Part 2/12:
Back in November 2023, John Williams, President of the Federal Reserve Bank of New York, made a noteworthy comment: the Fed will soon need to grow its balance sheet again. While this statement went somewhat unnoticed in the broader public discourse, it signals a significant policy shift. Williams specifically mentioned that it would not be long before the Fed resumes expanding its assets, effectively indicating an imminent return to quantitative easing (QE).