Foreign governments are dumping US Treasury bonds, and the Federal Reserve is stepping in to buy them instead.
Over the past year, the Fed has added $386 billion in Treasury holdings, creating new money in the process. They call it “reserve management purchases,” but the consequences look awfully familiar: more money creation, more inflation, and a weaker US dollar.
The numbers tell a worrying story. And this could be just the beginning.
#Inflation #FederalReserve #USDebt #USDollar #QuantitativeEasing #Economy
