That’s the scale of how massively the fed over flooded the markets with liquidity. Absolutely unprecedented. No wonder assets, RE, crypto, SPACs, etc. have skyrocketed.

QT should start undoing a lot of those market distortions and interferences once ON RRP is back at zero, IMO . I also think that’s why the fed did announce such reduced QT volumes - so far QT hasn’t been noticed due to that drawdown. Once it’s at zero, it will be noticed in the markets. The fed wants to take that transition with kid gloves on.

They want a “soft landing” mild business cycle recession, not a crash. IMO, they think the current levels of QT would cause issues once ON RRP is at zero.

However, normalization is needed. Way, way too much liquidity and artificial rate manipulation in recent years. We need to pull it all back out and let free markets work with capitalism, not the “fed put.”