Even before Corona, it was clear; the Fed can’t reduce the size of its balance sheet.
What you said in chart form – Fed's balance sheet vs Nasdaq. The only time the Fed attempted to return its balance sheet to pre-2008 levels led to the huge DEC 2018 sell-off. Even before Corona, it was clear; the Fed can't reduce the size of its balance sheet. pic.twitter.com/g5vTozEgnZ — Peter Schmidt (The 92ers) … Read more