I have a poor understanding of the FED? Lmfao try that with someone else.
2 months ago, the Fed made 300 billion dollars in 2 1/2 months. The reason? To return to the quantitative easing strategy.
Last time they used this strategy? 2008 financial crisis
What does this imply? The U.S. financial system is in very bug trouble. Trump took office in 2017..... Why is this happening now?
The market will crash because of something called the repo market.
You see, Wall Street firms don’t have to balance their books at the end of every day. In fact, on any given day, they may have released more money to the market than they took in.
That’s only possible because on an average day, other financial firms take in more money than they release. (Hence why the economy crashed in 2008, banks were giving more than they were receieving. Can't happen in the economic world. With me?
Now....
The repo market is where firms with excess daily cash — known as bank reserves, held in special accounts at the Fed itself — lend money “overnight” to firms with a daily shortfall.
The interest rate charged for these overnight loans is the basis for everything from consumer loans to decisions on big corporate investments. It’s a critical number.
The problem?
Every time a financial institution borrows on the repo market, it must put up either Treasury bills or mortgage-backed securities as collateral. That’s why it’s called the “repo” market … because the borrower promises to repurchase that collateral after 24 hours.
If available reserves can’t meet demand for overnight loans, interest rates spike..... It has been spiking since September. :siilaanyolaugh:
Wall Street has been forced to take up the slack by buying evermore Treasury bills every month to help the federal government finance its deficits.
That means Wall Street is converting more and more of its reserves into Treasury bills, which are unavailable to meet the demand for overnight repo loans.
Hence the spike in interest rates … and Wall Street’s fears that vulnerable firms might go insolvent if they can’t find money on the repo market.
And.... That’s where the Federal Reserve’s money-printing comes into play.
Since mid-September, the Fed has supplied $300 billion to the repo market.
It has done this by purchasing Treasury bills from financial firms to increase their cash reserves. That increases the amount available to lend on the overnight repo market.
The Fed is basically printing money to allow the federal government to pay its bills.
THE ECONOMY IS GOING TO CRASH NINYAHOW! STOP ARGUING WITH ME IN CIRCLES AND GET YOUR DUCKS IN A LINE!!!!


Source:
https://banyanhill.com/the-feds-printing-money-again/