He can do this on 2 fronts- qe to the banks while making lending to consumers and businesses more expensive.

The Federal Reserve since 2008 has stuffed an 8.7 Trillion dollar warehouse full of shit they bought from the “Too Big To Fail” banks.

That shit is MBS (mortgages), Bonds and other financial instruments

In exchange, the banks got sweet, sweet cash they they were supposed to lend to everyone so we could buy cars, houses, start businesses and send our kids to college.

They lent some out the back door but also operated a gambling operation out the back door. Shady.

When Covid hit, they pumped so much money into the bloodstream of the economy that weird shit started happening. Companies that should have failed were kept afloat (zombies) People’s houses exploded in value and with zero rates they could refinance and buy a bunch of useless shit. That’s when your fellow Wall Street bets pals were trading GameStop with their magical internet money and using it to buy lamb is and monkey pics.

But, inflation started to accelerate. Basic law of economics is that when you shoot money out of tshirt cannons into the economy, prices for everything goes up.

To fight that, the federal reserve started making it more expensive to borrow money (raising the fed rate or “hiking”) They also started QT (selling shit from their warehouse)

which also has the nasty effect of breaking shit which is why Silicon Valley took the dirt nap.

In a panic, they started the whole QE thing again.

And…here we are

It's a $400 billion dumpster fire extinguisher. It isn't particularly inflationary since it is unlikely this bank liquidity replenisher will result in banks making more loans and expanding the money supply.

If by year you mean 5-6 months, then yea

The dude is literally making the “troll” face from that meme that circulated around like 2009-2012 on 4chan.

How many times will this be posted ?

“Bro that’s nuts” - I say as I impatiently wait for you to pass the bong.

And resilient.

An entire year of quantitive tapering erased in a week. Aka inflation back up reset to last year.

QE or Quantitative Easing was an experiment by Federal Reserve Chairman Ben Bernanke after the 2008 Great Financial Crisis.

Prior to that, they tried dropping the Federal Reserve Rate to 0%. It didn’t work.

So, they decided to give the Too Big To Fail banks an obscene amount of money in hopes they would lend it to people and jumpstart the economy. They did this by buying financial assets FROM the banks.

Did the banks start making loans? Of course not!

They started betting on the assets they they just sold to the Fed. THEY PAID THEMSELVES BONUSES AND bought the financial assets that they knew the Federal Reserve was trying to raise the value of.

There were protests, remember the 99% marches on Wall Street?

so QE is this shitshow and QT is the opposite (Quantitative Tightening) where the Federal Reserve sells or allows assets to run off the balance sheet.

Remember that 2.8 Trillion of the 8.7 Trillion is MBS or Mortgage Backed Securities (the dogshit Jenga tower from “the Big Short”) and that Fannie Mae & Freddie Mac have been nationalized (aka a 14 year “Conservatorship “ ) since then.

So Jay Pow raised the fed rate by .25 (to not spook markets) while SIMULTANEOUSLY pumping $400 billion into banks via this scumbag scheme called QE

What does this mean?

I have no idea, I’m just some dude on Reddit

Edit- removed stuff about the tea party. Not essential

Fire jpow

Can someone explain to me what’s going on? I do not know any of the terminology all of you use. Should an average blue collar guy like me worry about what’s going on? Also, what’s up with you guys and Wendy’s?

Hit it with some flavor BAM

[removed]

😂 inhad a chuckle

"That's a bingo"- Col. Hans Landa

Fucking someone destroy the money printer.

Ha. A $400 Billion helicopter drop is a helluva way to fight Inflation.

Let’s throw some gas on that fire!

Inflation is going to moon!

It's a Ponzi Scheme

The Federal Reserve has no discipline. One reaction regardless of the problem: just throw money at it.

Doesn't matter if it's a banking crises, or a virus, or unemployment, or fraud, or economic downturn, etc.

They are a one trick pony that backs up the truck and fills it with cash. Next takes it to the helicopter to dump it on whatever problem that requires a thoughtful solution.

It will work (until it doesn't). No free lunches...and the check is now on the table.

Who's gonna pick it up? Taxpayers.

🤡🤡🤡🤡🤡 let’s raise rates by 1% JP…!! Print print print, we can get to 1T!

Effectively a $400 billion dollar money drop

nothing to see here folks. move along. move along. I SAID MOVE ALONG!!!

Yep. No /s