I mean it in the usual supply/demand sense: more money => higher prices.[1]. The Fed OMO directly drives prices level/inflation. Look at the series below... t

I mean it in the usual supply/demand sense: more money => higher prices.[1]. The Fed OMO directly drives prices level/inflation. Look at the series below... the 10 year break even inflation rate[2] looks almost exactly like the stock market since the crash, but they weren't in sync before. Ofc, it's primarily being used to shore up the value of the 10-Year Treasury Constant Maturity Rate bond [3], which would otherwise look like [4]. But I think the money supply pressure effects both, and the relative quantities are on par, so seems like the pieces fit to me. [1] https://www.investopedia.com/insights/what-is-the-quantity-theory-of-money/ https://www.investopedia.com/insights/what-is-the-quantity-t... [2] 10-Year Breakeven Inflation Rate: https://fred.stlouisfed.org/series/T10YIE https://fred.stlouisfed.org/series/T10YIE [3] 10-Year Treasury Inflation-Indexed Security, Constant Maturity: https://fred.stlouisfed.org/series/DFII10 https://fred.stlouisfed.org/series/DFII10 [4] 10-Year Treasury Constant Maturity Rate: https://fred.stlouisfed.org/series/DGS10 https://fred.stlouisfed.org/series/DGS10