The Fed’s $6.6 Trillion Test; QT after QE
The Fed expanded its enormous portfolio—sometimes called a balance sheet—during the 2007-09 financial crisis
and again during the pandemic when it bought colossal quantities of government debt and mortgage-backed securities to stabilize markets and stimulate the economy.
Fed officials don’t want the balance sheet to be so big because supplying trillions of dollars of interest-bearing reserves to the banking system carries political costs,
such as paying large amounts of interest to banks.
When the Fed purchases securities, it creates reserves—electronic cash that banks hold at the central bank.
When the securities mature, that electronic money drains out of the financial system.
Nick Timiraos WSJ Oct. 28, 2025
Centralbankerna tryckte pengar som galna
RE: Antingen var de inkompetenta, eller, mer troligt, skräckslagna.
Ja, vad skall man göra när våra storföretag lånat upp miljarder på typ 30 dagar. Om de inte hade kunnat förnya dessa krediter, vilket då var osäkert, hade företagen fått inställa betalningarna.
Riksbanken köpte företagscertifikat för 12 miljarder
The fiscal scale of Bidenomics is larger than Roosevelt’s New Deal in the 1930s. It is larger than Johnson’s guns and butter in the 1960s, or Reagan’s military rearmament in the 1980s.
We are witnessing an extraordinary experiment in US economic policy.
https://englundmacro.blogspot.com/2025/10/things-might-be-different-this-time.html
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