The Fed's Pivot: The Return Of Easy Money & The Inflation Storm Ahead

Jerome Powell signaled the end of the Federal Reserve’s "quantitative tightening" (QT). The author interprets this as a prelude to renewed money printing, likely starting in early 2026. The job market's weakening and homeowners' financial strain are cited as key drivers. The Fed's QT process has been slow, reducing the balance sheet by only $2.2 trillion. The Fed's reluctance to aggressively shrink the balance sheet is evident in their methods. Powell acknowledged that the pre-pandemic balance sheet size is not a target. The author predicts that restarting QE from a bloated base will fuel high inflation. This potential for currency destruction is unprecedented in America. The article suggests investing in commodities and mining stocks. The author believes this will set off a massive bubble in precious metals.