Here's how the Fed's balance sheet expansion that's got the market excited is going to work

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Key issues will be how ambitious the program will be, and how the market will perceive what the Fed is doing.

But in terms of the end goal, there's a big difference between wanting to rescue a sliding economy and looking to keep interest rates in check and liquidity flowing through the banking system.

"This is night and day with their previous QE attempt," observed Peter Boockvar, chief investment officer at Bleakley Advisory Group, who called the process "just modern day open market operations and nothing more." Boockvar noted that prior to the financial crisis, the Fed's balance sheet generally expanded about in step with GDP growth, so this process shouldn't be much different.

 

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Market may be expecting more rate cuts than the Fed will deliver, meeting minutes showThe Federal Open Market Committee on Wednesday released minutes from its Sept. 18-19 meeting. There minutes forgot to mention they are Insolvent. First 95 years of existence accumulated $800 billion on balance sheet. Last 3 WEEKS of existence accumulated $178 billion on balance sheet.
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