Fed Board members say that accommodation, i.e., buying Treasuries and mortgage-backed securities, is going to be cut back.
The last time the Fed Res cut back on buying Treasuries happened between November 2017 and September 2019, or the short-lived economic recovery under Trump.
The Fed would need to reduce is Treasury holdings -63.7% to get to the already-high level of $2.09 trillion hit on 21-Aug-2019 during the best part of the Trump-era recovery. To get it back to the 2003 level, during the post- 9/11 lull before the residential reality boom, the Federal Reserve would need to sell off over $5.1 trillion Treasuries for a -89.1% fall.
The USA economy has not been normal since the Dot Com blow up at the end of 1999 - beginning of 2000 followed by the 9/11 attack and Federal Reserve panic. In short the USA economy has been juiced up for the entire 21st century.
Quantitative Easing needs to be outlawed. It prolongs the inevitable.
Gab It
