# Why Fed Should Restart QE

> Fed may need to restart QE to stabilize markets as inflation and debt rise.
- Title: Why Fed Should Restart QE · Seekingalpha | Shortify
- Summary: Fed may need to restart QE to stabilize markets as inflation and debt rise. The Fed should consider restarting quantitative easing to stabilize credit…
- Keywords: fed, quantitative easing, inflation, debt, credit markets, sp500, money, business, Restart, Seekingalpha
- Source: Seekingalpha — https://seekingalpha.com/article/4957502-why-fed-should-consider-restarting-qe
- Author: Victor Dergunov
- Published: 2026-10-26T16:15:00+00:00
- Read time: 1 min
- Topics: fed, quantitative easing, inflation, debt, credit markets, sp500, money, business
## Fed's Current Stance
The Fed's hawkish stance, driven by high inflation and AI investment, is straining markets amid soaring debt and deficits.
## Fed Should Pivot to Easing
I argue the U.S. economy now requires persistently low rates; the Fed should pivot to easing and consider longer-end QE to stabilize credit markets.
## Fed Balance Sheet Expanding
Despite hawkish rhetoric, the Fed's balance sheet is quietly expanding, potentially injecting about $200 billion in liquidity this year.
## S&P 500 Target
I maintain a constructive outlook, reiterating my early 2027 S&P 500 target of 8,200, 8,500, contingent on a dovish Fed pivot and easing geopolitical risks.
## Key takeaway

The Fed should consider restarting quantitative easing to stabilize credit markets amid high inflation and debt.