In March, the Federal Reserve announced the emergency Bank Term Funding Program (BTFP), with an initial $25 billion fund to backstop America’s banks. But critics say the full program risks pumping up to $2 trillion into an already overinflated economy. Planet Crypto met Chairman of the Fed, Jerome Powell, and asked him to set the record straight.
PLANET CRYPTO – Mr Powell, after a period of tough talk on monetary tightening, isn’t your new program just QE by stealth?
JEROME POWELL – Not at all. In the current inflationary climate, injecting easy money into the system would be pretty irresponsible. Would you like a cup of tea, by the way?
PC – Oh, thank you. Hold on, this is just a mug filled with dollars.
JP – No, it’s tea. Green tea.
PC – It tastes like wet paper.
JP – Exactly. Green tea.
PC – People are worried that you’re sneaking out trillions in liquidity without a clear plan of how to AATCHOO!
JP – Bless you. Here, have a tissue.
PC – Thank-you. Damn allergies. Wait, you’ve given me a greenback.
JP – No, it’s definitely a Kleenex. It’s just… used. If you need more, take a handful.
PC – Mr Powell, this tissue box is stuffed with dollars. You are sneaking money out by stealth.
JP – Not at all, you’re worked up over nothing. Here, take your anger out on this cushion.
PC – The one stuffed with Benjamins?
JP – No, no, your eyes are deceiving you. Look again through these binoculars.
PC – Those aren’t binoculars, they’re two rolls of dollar bills. Stop giving money away with no plan of how to get it back!
JP – I don’t have to listen to these unfounded accusations. Please leave and take your suitcase with you.
PC – It’s your suitcase! And it’s filled with millions!
JP – No need to give it back. And close the door on your way out.
PC – It’s not a door, it’s an oversized cheque for a trillion dollars!
JP – You can cash it at reception. It’s the big desk made from bank notes.