Monday, March 8, 2021

Tag: How the Fed Created an Uncontrollable “Monster” for the Markets

How the Fed Created an Uncontrollable “Monster” for the Markets

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from Birch Gold Group:

Like Victor Frankenstein, the Fed may have created its own monster. It’s been called many things, such as Quantitative Easing (QE), QE Lite, QE/Not QE, “Organic” Balance Sheet Growth, and more.

But no matter what you choose to call it, the bottom line is this:

The Fed is growing its official balance sheet at a frantic pace to provide liquidity to various banking operations, including the repo markets.