by Wolf Richter
The Fed is funding consumption circuitously via Treasuries and government stimulus spending, shifting impact from asset prices to consumer prices.
Total assets on the Fed’s balance sheet for the week ended August 5, released this afternoon, declined by $4 billion from the prior week, to $6.945 trillion. In the week ended June 10, total assets eked to a peak of $7.17 trillion. In the eight weeks then, they have fallen by $224 billion: