Powell & Brainard Suddenly Make Inflation #1 Priority in their Thank-You Statements | Wolf Street

Today, a crackdown on inflation would mean a quicker end to QE. So far, with brazen disregard for inflation, now tracking over 6% as measured by CPI, the Fed has continued its money-printing spree.

It just now reduced the amount of its asset purchases from $120 billion in October, to $105 billion in November and to $90 billion in December. But they’re still printing money! So I expect that asset purchases will end sooner than the previously announced time frame through mid-2022.

The massively huge wave of QE since March 2020 – $4.4 trillion of money printing in 20 months – pushed down long-term interest rates to record lows and inflated asset prices to record highs, including the housing market, and helped fire up inflation to the highest rates in three decades.

Powell & Brainard Suddenly Make Inflation #1 Priority in their Thank-You Statements | Wolf Street