The Fed just reversed 4 months QT in 4 days.

The regime change from QT to QE is happening at breathtaking speed.

The screenshot below shows the weekly balance sheet for the Federal Reserve. It is up $300bn this week. That’s 4 months of QT reversed within 4 days!

It’s 10% of the initial Mar-Jun’20 Covid impulse. And it’s 30% of the Sep-Nov’08 GFC impulse. And all of that in just one week.

What does that mean?