The false narrative, parroted by many, that the Fed is wrecking its balance sheet

a chart is worth a thousand words, https://www.gisreportsonline.com/r/us-econ-republicans-democrats/#toc-pos-conclusion

Total assets of the U.S. Federal Reserve Bank​

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just the facts,

the Fed' balance sheet has risen significantly (from 4 to 9 ish) since Trump was fired by the American voters in 2020.
after reaching the peak level (9 ish) in ~ mid-2022, it has declined to ~ 7 ish

how intellectually dishonest was the false narrative that the Fed is wrecking its balance sheet?
especially when being spinned by the parrots are also complaining about Government debts continuing to rise.



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People who follow/study economics understand that there is a direct correlation between Government debts and the size of the Fed's balance sheet.

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a "heads up" to Invisible Fan

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in view of the Fed's current mantra of "higher for longer", as Trump 2.0 is rapidly approaching, it is highly likely that the Fed's assets will be reduced furhter.

so, dispense with the parroting of the false narrative that the Fed is wrecking its balance sheet

 

why is Invisible Fan not complaining about these planned reduction to the Fed's balance sheet?

Trump 2.0's newly nominated Fed Chair, Waller, supports
a gradual reduction of the Fed's balance sheet

Fed's Miran lays out path to shrink central bank balance sheet further,
outlining a multi-year strategy to reduce the Fed’s $6.7 trillion balance sheet by up to $2 trillion, aiming to
ease policy constraints and restore flexibility.


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during the Pandemic, the Fed increased its balance sheet significantly to provided more money supply in circulation.
the size of Fed's balance sheet increased from ~ $ 4 Trillion to ~$ 9 Trillion

post the Pandemic,

intellectual dishonest critics of the Biden presidency had conveniently disparaged this gradual reduction to ~$7 trillions by the Fed
as 'wrecking its balance sheet", ,

and poster Invisible Fan parroted this false claim and presented it as being gospel​