In her latest investment strategy newsletter, Lyn Alden argues that the Federal Reserve has quietly shifted back into balance sheet expansion, ushering in what she calls a “gradual print” rather than a dramatic return to crisis-era stimulus.
Alden’s Latest Analysis Breaks Down the Fed’s Balance Sheet Pivot and What Comes NextAlden contextualizes those figures by comparing them with prior QE episodes, noting that even a $750 billion expansion would represent only a low single-digit percentage increase relative to today’s $6.5 trillion balance sheet. In her view, “big prints” now require trillion-dollar moves, not incremental adjustments.
Lyn Alden also connects the Fed’s actions to structural trends in bank deposits and fiscal deficits. With U.S. deposits growing by hundreds of billions annually, Alden argues the Fed is effectively forced to expand reserves just to keep pace with the system it oversees.
FAQ What does Lyn Alden mean by the “gradual print”?Lyn Alden uses the term to describe steady Fed balance sheet expansion aimed at maintaining liquidity, not emergency stimulus. Is the Fed doing quantitative easing again, according to Lyn Alden?Alden says no, noting the Fed is buying short-duration Treasurys for reserve management rather than long-term economic stimulus. Why does Lyn Alden focus on Japan in this report?Lyn Alden highlights Japan’s rising bond yields as a case study in how heavily indebted nations manage monetary stress. How does Lyn Alden view Bitcoin in this environment?Alden continues to see bitcoin as a scarce asset that benefits from gradual monetary expansion and long-term fiscal pressures.
