![](https://i.imgur.com/CLvY2jA.png")
12-11-2022, 12:20 PM
According to my chart below, the Fed’s assets peaked at $8.95 trillion in April and have since declined to $8.68 trillion, or a cumulative drop of $270 billion. It may be no coincidence that last week markets experienced a vicious sell-off as the Fed withdrew $46B.
So, while the Fed took $287 billion out of the economy, the federal government was busy completely overwhelming these actions by injecting $405 billion into the economy. This lack of monetary and fiscal coordination is confusing and gives the appearance that the government’s left hand isn’t talking to its right hand.
The cynic in me thinks the federal government has been quietly adding more money into the economy than the Fed is taking out in an effort to succeed in the mid-term elections. I guess we’ll find out tomorrow night if this strategy worked.
https://www.advisorperspectives.com/comm...t-spending
So, while the Fed took $287 billion out of the economy, the federal government was busy completely overwhelming these actions by injecting $405 billion into the economy. This lack of monetary and fiscal coordination is confusing and gives the appearance that the government’s left hand isn’t talking to its right hand.
The cynic in me thinks the federal government has been quietly adding more money into the economy than the Fed is taking out in an effort to succeed in the mid-term elections. I guess we’ll find out tomorrow night if this strategy worked.
https://www.advisorperspectives.com/comm...t-spending
