Jason Burack of Wall St for Main St provided an update on the Federal Reserve’s balance sheet after the Quantitative Tightening (QT) program has already started but is slated to continue to ramp up for the rest of 2018 until QT gets to $50 billion per month in asset sales starting in October.
Track the Federal Reserve’s balance sheet here: fred.stlouisfed.org/series/WALCL
Jason talks about how the Fed briefly panicked and stopped QT and started increasing its balance sheet again for about a month when the US Dollar Index was in danger of crashing below key 88 support levels. Within about a month, the US Dollar Index has now rallied strongly to over 93 at the recording of this video on Tuesday, May 8th 2018 which gave the Fed a green light to continue with QT.
Jason also talks about how much debt and credit has increased globally since the 2008 global financial crisis and how despite the Federal Reserve’s publicly stated balance sheet not increasing basically at all since October 2014 how the other major central banks have done their own QE or balance sheet expansion to pick up the slack.