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I think it's unwinding the QE it did since 2008.
by coldcode 4y ago
I think it's unwinding the QE it did since 2008.
- boole1854 4y agoThey are nowhere near unwinding the QE since either the pandemic or 2008: https://fred.stlouisfed.org/series/WSHOSHO https://fred.stlouisfed.org/series/WSHOSHO Why would they even try to undo 14 years of asset purchases? Their goal is only to reduce the growth in nominal spending in the economy so that it grows at around 4% annually (yielding an inflation rate of 2%). The goal is not to return nominal spending back to where it was in 2008, which would involve nearly a 50% cut from current levels.