The net effect is that its total assets have edged up just 1.0% since June 24, with a dip in the middle, after exploding higher in the prior three months. This is the Fed’s tool to bail out asset holders during each crisis, and enrich them when there is no crisis:
There is now clamoring among the crybabies on Wall Street that the Fed should increase its asset purchases, and they’re pressuring the Fed to announce a big increase at the next meeting, because, I mean, how else are markets going to keep on going up?
Over the past five months, the Treasury Department, in order to fund the budget deficits, has added $900 billion to the US national debt. And the Fed has bought $400 billion of it – monetizing 44% of this new debt.Update on the Fed’s QE | Wolf Street