Thread by @RickRieder

.#Markets keep pivoting off of a great deal of noise running through the #media, but as we’ve indicated for some time, it’s worth taking a step back to consider the power behind #monetary rescue programs and their influences.

Critics of the efficacy of quantitative easing (#QE) often contend that asset purchase proceeds remain stranded in the #financial #economy…

but the transfer of #capital to #MainStreet actors; amounts to the first direct payment of money creation from the #Fed into the real #economy since WW2, catalyzing broad #money and incremental #NGDP growth, and Chair Powell also indicated those purchases won’t run off.

In recent months, the marriage of monetary and #fiscal policy has aided both personal #income and personal #savings to spike higher to record levels, even despite a generational loss of jobs: we’ll learn more about that in this week’s #JobsReport.

At the same time the @USTreasury general account holds $1.5 trillion in cash, shattering its previous record high and commercial #bank deposits have grown by $2.09 trillion since the start of the year, an increase greater than all but seven of the world’s #economies.

All this represents dry powder that helps offset the growth lost from the #coronavirus crisis and subsequent #economic lockdowns. That’s not to suggest that we don’t have a long and trying road to recovery, we do, but we shouldn’t underestimate the rescue effort mounted.