‘All Restraint Is Gone,’ Investors Say After Trump’s $200 Billion Mortgage-Bond Order

Core Viewpoint - The Trump administration and the Federal Reserve are perceived to be injecting significant liquidity into the financial system, raising concerns among investors about potential market flooding, despite official statements denying a return to quantitative easing [2]. Group 1: Government Actions - The Trump administration has ordered a $200 billion mortgage-bond purchase, which is seen as a substantial move to increase liquidity in the market [2]. - Officials from the administration and the Federal Reserve maintain that these actions do not equate to a revival of quantitative easing, which has historically involved large-scale asset purchases [2]. Group 2: Investor Sentiment - Investors are expressing concerns that the current level of liquidity may be excessive, leading to debates about the long-term implications for the financial markets [2]. - The sentiment among investors indicates a belief that "all restraint is gone," suggesting a potential shift in market dynamics due to the influx of liquidity [2].