Why Is The Fed Protecting The Stock Market?
The $11 billion increase in the System Open Market Account Holdings report for February 14 has caught the attention of a number of intelligent market watchers for obvious reasons. The Federal Reserve is purportedly in the midst of a significant balance sheet normalization process whereby they are (and plan to to continue) selling large amounts of Treasuries and agency mortgage-backed securities. After amassing a portfolio of over $4.4 trillion, the Fed has used that massive hedge fund to artificially suppress interest rates and foster some serious asset inflation. The Fed was not alone in this [...]