9/9 Ballooning the balance sheet by the amount noted above could scare the market into thinking a re-run of 2022 is happening, which produced 9% inflation and a 25% correction in the S&P 500. Anything less than $7 trillion might not be enough to make a difference, and Trump might demand the Fed buy

8/9 What Impact Would This Have? We have argued that one reason the 2008 and 2020 programs worked was that markets were more worried about deflation than inflation. But since 2020, inflation has been front and center. CPI is running at a 4.2% annual rate as of May 2026, the highest since 2023. T

9/9 Ballooning the balance sheet by the amount noted above could scare the market into thinking a re-run of 2022 is happening, which produced 9% inflation and a 25% correction in the S&P 500. Anything less than $7 trillion might not be enough to make a difference, and Trump might demand the Fed buy