🚨 POWELL SIGNALS BALANCE SHEET EXPANSION! 🚨
The Fed is gearing up for major moves. Powell sees the balance sheet growing alongside the US banking system. This is massive divergence from pre-GFC norms.
Bessent's critique points to normalization towards those old standards, but the current reality is staggering. Fed holdings of nominal Treasury ex bills are now $3.6 T compared to $412 B before $LEH collapsed. Get ready for volatility.