Minn Pres. Kashkari weighs in on the Bill.......>

FED: Minn Pres. Kashkari weighs in on the Bill Buying=QE 'debate' in response to

a BBG piece which begins "In the court of investor opinion, the verdict is in.

The Federal Reserve is guilty of quantitative easing.".

- He Tweets: "6-9 months ago there was widespread talk of an impending

recession, triggered in part by yield curve inversion. I believe we (the Fed)

were largely responsible for the inversion. We certainly control the front end

while the back end reflected muted growth and inflation expectations. Hence in

my view we had moved into a contractionary policy stance, which increased

recession risk. But we recognized it and adjusted, cutting rates three times and

uninverted the yield curve. Now recession chatter and perhaps actual recession

risk have reduced. If that's true, should we be surprised the stock market is

up? QE conspiracists can say this is all about balance sheet growth. Someone

explain how swapping one short term risk free instrument (reserves) for another

short term risk free instrument (t-bills) leads to equity repricing. I don't see

it."