The next round of QE might happen without an official Fed program.

Dormant liquidity in the Federal Reserve System will be awakened when rate cuts begin. Money supply will rise rapidly, even if the Fed does not want to.

A lot of the liquidity injected during the last round of monetary stimulus has not yet become effective in the real economy. It is dormant in the Federal Reserve System and will be awakened once the Fed starts cutting rates. Money supply will likely rise rapidly at that point without an official QE program. In this article I will explain why.