🚨The Fed's balance sheet has dropped to about $7.1 trillion. Is it really good for the market? Let me tell you what I think!
Today, mainstream media at home and abroad are hotly discussing the topic of the Fed's balance sheet falling to $7.1 trillion, and the cumulative debt reduction this year is $1.39 trillion. Undoubtedly, this news seems to be a positive market signal.
But don't forget, I have told you before that as of August this year, the US government debt has reached $35.3 trillion (refer to the data of Trading Economics in the figure below), and it will generate $1 trillion in interest every 3 months, which means that the entire investment market is still facing huge debt pressure!
However, in this environment, mainstream media at home and abroad have consistently hyped up and released seemingly positive market news. Analysts believe that...
🤔 There are two possible explanations:
1. Stabilizing the economy: The economy may really have encountered difficulties and needs to release some positive news to stabilize the FOMO sentiment in the investment market.
2. To sell: Some large institutions, venture capital or banks are preparing to sell. They need retail investors to feel that the market is still prosperous, so as to attract them to enter the market to take over.
💬What is your opinion? What do you think is the real reason for the Fed's balance sheet reduction? In the current economic environment, how do you see the future direction of the market?
Finally, do you agree with the above views? Or do you have anything else to add? Welcome to share your thoughts in the comment area, let us discuss the possible motivations behind the Fed's balance sheet reduction and the real situation of the market!
