“Since the pandemic tanked the economy in March the Federal Reserve has expanded its balance sheet by nearly $3 trillion to support the financial markets and asset prices. The injection of Fed liquidity into the financial system has roughly matched the $3 trillion in fiscal stimulus that Congress authorized to send stimulus checks to people, offer additional assistance to newly unemployed people, and provide loans to businesses.
There’s an old saying, ‘If you build it, you own it’. The Federal Reserve owns the unfair system they created, and all the problems and changes that come with it. It’s impossible to make the system fairer if you don’t change policies, mandates, and charters that distort incentives and produce uneven outcomes. Policymakers are forewarned as investors should be as well that elections could trigger a lot of fundamental change.”