In fact, QE started reversing at the end of 2014.
The QE unwind has started to rattle some nerves.
Under tremendous pressure, the Fed sticks to its guns, mostly, and the crybabies are having a cow.
But how low might the Fed’s balance sheet go?
Their “Everything Bubble” is being pricked “gradually,” and they don’t like it.
The “up to” exacts its pound of flesh.
The “up to” begins to matter for the first time.
Here’s my math when this “balance sheet normalization” will end.
Mopping up liquidity.
With QE, the Fed created money to buy securities and pump up asset prices; now it sheds securities to destroy this money.