I was looking for the reason behind the sudden rebound in...

I was looking for the reason behind the sudden rebound in stocks.

The FED has started to increase the size of their balance sheet again!

Federal Reserve Board - Recent balance sheet trends

Are they crazy?

Their real interest rate is at least -5%.

And, their unemployment rate is 3.6%.

And, yet for some reason, they still feel like they need to do more.

It is quite clear that they will never be able to wean themselves off QE.

A bit sad actually. For a couple of weeks, I believed they had changed.