from Zero Hedge
Update: In implicit confirmation of everything said below, in his 60 Minutes appearance, Jerome Powell said that “There’s a lot more we can do. We’ve done what we can as we go. But I will say that we’re not out of ammunition by a long shot,” he said. Powell noted the Fed can increase its emergency lending programs and make monetary policy more supportive through forward guidance and by adjusting the Fed’s asset-purchase strategy. Which, as explained extensively below, is precisely what the Fed will have to do: by as much as $3 trillion in additional QE just to offset the flood of new debt coming to the market in the next 6 months.