The Fed or the Federal Reserve System is a kind of analogue of the central bank in the United States. It is an independent body and receives powers from the US Congress. Its independence lies in the fact that all decisions on monetary policy do not have to be approved by the authorities and even the president. We can say that the Fed does not belong to anyone,...
Evolution of Fed's QE-
Treasury/municipal bonds-> corporate bond ETF-> individual corporate bond-> Yield curve control (in potential development)-> Maybe... Individual stocks in the future...
As Fed adds more debts to its balance sheet, it hampers its ability to effectively intervene the market in the future. It will need progressively more and more stimulus...
Even as Fed balance sheet keeps climbing up and U.S takes on more national debt in the current low-interest rate environment, I am not eager to jump to the premature conclusion and entertain the idea of hyperinflation.
I'm not saying that it is improbable, I am just saying that it is an unlikely and low-probability event. Yes, it is a fat tail risk that...
