Powell has said that the Federal Reserve is going to grow its balance sheet organical. So that means the quantitative easing is over. But if we look at what is discussed then we have a full new quantitative easing program.
So why is this not having any effect on the Dollar? After all, it is quantitative easing causing inflation and making the Dollar even more worthless. The truth is that other central banks are even more reckless.
Just look at what happens in the current repo market. The repo market is only afloat by emergency injections by the FED. This is just a result of the destructive policies from the FED.
Would you say that 60 to 85 billion in organic growth? This is the number of assets being bought by the FED last month.
If we look at what happens shortly then we can’t expect the balance sheet of the FED going below 25% of GDP.
Of course, you are not getting this by the media. They will tell you that everything is fine.
But all is not fine. It is all going to be very nasty. So prepare yourself now.