The Fed just reversed 4 months QT in 4 days.

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The regime change from QT to QE is happening at breathtaking speed.

Fallacy Alarm

6

The screenshot below shows the weekly balance sheet for the Federal Reserve. It is up $300bn this week. That’s 4 months of QT reversed within 4 days!

It’s 10% of the initial Mar-Jun’20 Covid impulse. And it’s 30% of the Sep-Nov’08 GFC impulse. And all of that in just one week.

What does that mean?

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The regime change from QT to QE is happening at breathtaking speed. Fallacy Alarm. 6. The screenshot below shows the weekly balance sheet for the Federal Reserve. It is up $300bn this week. That’s 4 months of QT reversed within 4 days! It’s 10% of the initial Mar-Jun’20 Covid impulse. And it’s 30% of the Sep-Nov’08 GFC impulse. And all of that in just one week. What does that mean? Fallacy Alarm is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. Keep reading with a 7-day free trial. Subscribe to Fallacy Alarm to keep reading this post and get 7 days of free access to the full post archives. Start trial. Already a paid subscriber? Sign in. Previous.