The Loonie Hour Fed Cuts Rates, Brings Back QE Stimulus- w/ guest Jim Iuorio
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Dec 12, 2025 
Jim Iuorio, a macro trader and commentator, joins to discuss the recent Fed rate cuts and the implications of the QE restart. He explains how the Fed’s actions, while not labeled as QE, are effectively increasing liquidity. Iuorio introduces his 'debasement portfolio' strategy, advocating for assets like gold and crypto to hedge against currency risks. The conversation touches on global reactions to US fiscal spending and trade dynamics with China, offering insights into the market's future amid evolving economic policies.
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Fed Restarted QE Under A Different Name
- The Fed restarted balance-sheet expansion despite calling it something else.
- Jim Iuorio argues QE is QE and it injects liquidity by buying Treasuries.
Reverse Repo Collapse Forced Fed Intervention
- Reverse repo balances collapsed from trillions to near zero, signaling weak demand for short-term Treasuries.
- That shortfall pushed the Fed to become the buyer of last resort again to support Treasury auctions.
Short-Term Issuance Raises Roll-Over Risk
- Treasury's concentration on short-term issuance increases rollover risk and funding stress.
- Jim warns that once the Fed steps in for short-term support, extending to longer-term QE becomes easier.