The problem with the balance sheet process is that it is doing exactly what the Fed said it would – it’s running automatically in the background. Which is precicely where the Fed’s real problem (along with the “markets”) truly lie.
If the Fed stopped the process right now the damage is already done. Unless the Fed suddenly announced that they were reversing, not stopping, but reversing the QT process with another round of QE – where would the money come from to bid up (and sustain) the “markets” again?
https://markstcyr.com/2019/01/06/the-feds-words-are-now-meaningless/
