Here it Is: One Bank Finally Explains How the Fed’s Balance Sheet Expansion Pushes Stocks Higher

from Zero Hedge

One month ago, in a bizarre attempt to mock “QE Conspiracists” such as his current colleague and former Goldman co-worker Robert Kaplan, Trump’s chief economist Larry Kudlow and Morgan Stanley CEO James Gorman – Minneapolis Fed president and 2020 FOMC voter Neel Kashkari, also known as “Chump” for his role in arranging a bailout of his former employer Goldman Sachs alongside all US commercial banks and sticking the US taxpayers with the bill, asked “someone” to explain to him “how swapping one short term risk free instrument (reserves) for another short term risk free instrument (t-bills) leads to equity repricing.”

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