At the latest Jackson Hole resort vacation, Powell trumpeted the “significant reduction in holdings” by the Fed, suggesting that, by golly, they had made astonishing progress shedding all those trillions of dollars of securities holdings. Well, allow me to give that suggestion some perspective.
Simply stated, all he’s done is unwind back to around April 2021 levels.
If we take our time machine back to April 2021, you can see that – – – well – – the Federal Reserve still has a piggish amount of so-called assets. In other words, if the chart below is an achievement, well then B.F.D.
Get to work, Jerome!
The Perspective of Reduction
