The consequences of the Fed's actions, revealed by trends of price, leverage, and time, are defined and discussed in The Matrix for subscribers.
Janet Yellen, Biden’s Treasury secretary pick, tells lawmakers to ignore national debt and ‘act big’ to avert a protracted economic downturn. The Fed's is already acting big. The Fed used to stimulate the economy through purchase of short-term corporate paper.
The Fed's stimulation efforts changed to buying government debt after WWII. After 2003, that model changed as the Fed slowly switched to buying distressed and worthless assets outside of US Treasury debt. That trend continues today.
Meanwhile, millions of jobs in the working class have been permanently destroyed by the lockdowns. The Fed might be able to provide liquidity in the debt markets, but it can't do much to reclaim lost jobs. If stimulus created jobs, the US would have dug itself out of the debt hole after cash for clunkers, plus numerous other failed stimulus programs.
Follow me on Twitter or facebook for further discussion.
Market-driven money flow, trend, and intermarket analysis is provided by an Access Key.