MAR 2, 2018
The proof is in the pudding, the Fed buys over a $billion dollars in TIP's (Treasury Inflation-Protected Securities) and don't believe for one minute that their done buying them. Inflation on the rise according to The Wall Street Journal as well as former Fed Chair Alan Greenspan pointed out and famous hedge funders like Paul Tudor Jones.
Fed Chair Jay Powell said he was going to pursue rate normalization (aka, letting rates rise). And he seems to be a man of his word: The Fed today decreased their balance sheet by $17+ billion.
$9.6 billion was due to maturing Treasury notes and $9.3 billion was due to agency mortgage=backed securities (Agency MBS)
On the other hand, The Fed once again bought $1.8 billion of TIPs.
Now, why would do that if they have the gold?
ORIGINAL SOURCE: Fed Decreases Balance Sheet By $17 Billion (Half T-Notes, Half Agency MBS, Adds $1.8 Billion In Inflation Protection) Published by confoundedinterest.net on 3/1/18