From Bud Conrad, Chief Economist, Casey Research:
... The Federal Reserve balance sheet expanded dramatically as the credit crisis became acute in 2008. The Policy Tools grew by $2 trillion with the QE1 purchase of mortgage-backed securities and the QE2 purchase of long-term Treasurys.
This was an unprecedented effort to support those markets, provide liquidity, and drive rates down to zero.
A simple extrapolation of similar expansion policies to the end of 2014 suggests that the Fed may require an additional...
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