Archive January 2020
At the beginnig of 2018 the long-awaited QT (Quantitative tightening) was started by the FED. QT in plain words means shrinking the money supply, the opposite of QE (Quantitative Easing) which is expanding the money supply or simply printing money.
QE was the main tool used to stimulate the economy and fight the recession started late 2008. Ben Bernanke was the FED charman back then, and he promissed that QE was just temporary and at some point when the economy is in good shape this will be reverted. Fast forward 10 years and FED chairman is Jarome Powell. At the beginning of 2018 the US FED slowly began to shrink it's balance sheet, year and a half later Aug 2019, the've manage to cut off almost 700 billion dollars, but then something happened.