An Innocent Question Re: Fed Balance Sheet Expansion and Deflation

This is a follow-up to “24/7 Money Printing at the Fed? Misconceptions and Consequences.“ For a longer list of monetary / macro-related notes, please see the most recent related note here. My prior note regarding the nature of “money printing” sparked an interesting debate with a friend, which forms the basis of this current post. … Continue reading An Innocent Question Re: Fed Balance Sheet Expansion and Deflation

24/7 Money Printing at the Fed? Misconceptions and Consequences.

The US Federal Reserve balance sheet is expanding at an unprecedented pace. If investors thought 2008-2018 was extraordinary enough due to a decade of near-zero Fed fund / interest rates, the last 3 months can only be described as absolutely absurd. This chart shows the Fed’s balance sheet in trillions of USD: In <6 months, … Continue reading 24/7 Money Printing at the Fed? Misconceptions and Consequences.