Monetary policy within the United States is in an awkward position.
Ever since late August 2019, the Federal Reserve has been aggressively expanding its balance sheet by buying T-bills in a sudden pivot, even though the economy is over a decade into the longest expansion in U.S. history, equity valuations are near historic highs, and the official unemployment rate is near historic lows.
Additionally, according to Wednesday’s uneventful FOMC release that left almost everything unchanged, the Fed expects to continue repo operations through April and to continue buying T-bills at least into the second quarter