"These additional operations are intended to help offset the reserve effects of sharp increases in non-reserve liabilities later this year and ensure that the supply of reserves remains ample during the period through year end."
...a piece of the bull case relies on a stealth-dove Fed, worried about inflation expectations... but in the faster-growth economy that stocks are increasingly discounting, that could flip to a stealth-hawk Fed fairly quickly.
Compton turned out to be right about nuclear detonation...and we can only hope the Fed gets it right this time... But you might want to think about owning a bit of gold and silver... just in case these guys ignite the atmosphere.
The whole reason the Fed is buying Treasury bonds in this “not QE” program is to allow the spending and borrowing to continue without pushing up interest rates...
