The Fed is currently in QT, not QE. M2 is down nearly $1.5 trillion since they started. There is still about $3-4 trillion in excess liquidity, but it is being destroyed at a rate of about $75 billion a month.
I am aware of that.
Where do you calculate in the $1-2 trillion a year federal deficit? I gave a range because the published deficit is highly massaged and is greater than claimed. Where is that “money” coming from?
And the Fed balance sheet? It’s been a while but the last I saw it was huge. Plus the the real market value of the Fed holdings is a lot less than their balance on the books. There has to be a reckoning due there.