Why is the Fed quietly buying billions in bonds — and hoping nobody notices? How the Fed’s ‘stealth QE’ is bullish for bitcoin, gold and commodities.

marketwatch ^ | Charlie Garcia

[NoLibZone]

The U.S. Federal Reserve just pulled off something stealthy — over four days last week, without fanfare, the Fed vacuumed up $43.6 billion in U.S. Treasurys. That’s $8.8 billion in long-dated 30-year bonds on May 8 alone, plus another $34.8 billion earlier in the week. Not exactly small change.

Quietly returning to the quantitative-easing trough isn’t standard Fed housekeeping — it’s like a bank robber returning to the scene because he forgot his car keys.

Let’s talk straight: This isn’t tightening. It’s stealth easing. It’s monetary policy on tiptoes. Some traders have begun to notice, and smart investors should too.

Commodity traders, in particular, have a nose for monetary sleight-of-hand. Gold GC00 +0.57% , the ultimate financial cynic’s metal, has risen sharply since early 2024. Gold doesn’t believe in politicians, central bankers or economists — even the Ivy League types who wave their hands and promise stability. It believes numbers.

But this isn’t just a U.S. game. China has jumped into the gold pit too, and brings a bigger shovel. China’s central bank just cranked open the vault doors by dramatically raising gold-import quotas, letting local banks swap U.S. dollars DX00 -0.10% directly for bullion.

[TexasGator]

“Already getting much more interest than I need for living expenses.”

Will you be able to say that in 20 years?