Chairman Jerome Powell, has ended quantitative tightening (QT) and started a program of purchasing short-term Treasury bills, which some market commentators view as a new phase of quantitative easing (QE).

Jerome Powell, the current Chairman of the Federal Reserve, has overseen a de facto restart of quantitative easing (QE) through the implementation of "Reserve Management Purchases" (RMPs) as of December 12, 2025. While the Fed has officially ceased quantitative tightening (QT) and avoids the term "QE," these purchases of short-term Treasury bills have the effect of expanding the balance sheet and injecting liquidity into the financial system to address recent market strains.

How QE Benefits Stocks:
Lower Interest Rates: The central bank buys government bonds, increasing demand and pushing yields down; this makes fixed-income investments less attractive compared to stocks.
Portfolio Rebalancing: Investors sell their bonds to the central bank and reinvest that money into stocks, increasing demand and prices.
Economic Stimulus: QE aims to stimulate growth, leading companies to expand, borrow more cheaply, and potentially increase profits, which boosts stock valuations.
Increased Liquidity: More money in the financial system encourages risk-taking, driving capital into equity markets.