The wide-spread QE psychology has so far not dented the dollar significantly, perhaps one reason why is the rate of return on the newly created USD liquidity. A normal QE program would entail the Fed buying Treasury bonds, not T-bills, as well as coincide with a policy rate close to zero which would make selling USD very cheap. The recent liquidity injections, which are aimed to prevent dollar scarcity in the money market, instead create liquidity which provides a rate of ~1.55% – meaning selling the USD remains costly. The Fed might even have to hike the IOER rate this spring to keep the policy rate close to the middle of its target interval, which could boost the cost of selling USD. Such a move would also make it more difficult to argue that the Fed’s balance sheet expansion is indeed proper QE.It’s also worth noting that the fast-money consensus, eager to sell dollars, would be wrong-footed if the US picks up against the rest of the world rather than converges. According to the latest consensus expectations, US growth expectations have actually climbed somewhat vs the rest of the world.