From crisis to crisis to raging inflation:
Note the cute little QT #1 between November 2017 and August 2019, when total assets dropped by $688 billion. QT #2, which started ramping up in the summer of 2022, has already reached $864 billion, but the Fed’s pile has gotten a lot bigger and there’s a lot more to take off the pile. And now inflation is way above the Fed’s target, while during QT #1, inflation was at or below the Fed’s target:
