In retrospect, we should have explained the shift in the program’s objective more clearly to the public and market participants. In future times of crisis, we will avoid this issue by clearly distinguishing between asset purchases for market functioning and those for monetary policy.
As well, the transition from market functioning to monetary policy would likely be a good time to consider recalibrating the scope of the program and to modify its structure and scale. QE is something that has only been used once in our history—during the pandemic.