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A comment on The Fed Will Buy Bond ETFs Now. Parent comment

Re:The Fed Will Buy Bond ETFs Now by lisper on Tuesday May 12, 2020 @02:04PM (#23157401)
You've got the causality backwards. It's the writing-off that causes inflation (because now you have all that extra cash out in the economy that never comes back to the Fed in the form of loan repayment), not the other way around.
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Re:The Fed Will Buy Bond ETFs Now by jddj on Tuesday May 12, 2020 @06:32PM (#23160877)
Only if they continue to buy.

As shown in 2018, the fed has the power to massively deflate the currency simply by indicating that they might want to unwind or reduce stimulus.

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