US Federal Reserve: Accelerator to the Floor!

In the battle against debt deflation, TEAM Federal Reserve has gone full blast!

All charts from St. Louis Fed, through October 30

Monetary Aggregates:

Adjusted Monetary Base

MZM (Money with Zero Maturity)

M2

Bank Credit and Federal Reserve Balance sheet holding of US Treasuries
Even as the FOMC brought interest rates down to 1% Fed Fund Futures appear pointing to another 25 basis point cut!

One recent impact: The moribund Commercial Paper and Asset backed markets evincing signs of renewed life!

Kenneth S. Rogoff, a former chief economist at the International Monetary Fund and now a professor at Harvard quoted at the New York Times,

``We’re entering a really fierce global recession. A significant financial crisis has been allowed to morph into a full-fledged global panic. It’s a very dangerous situation. The danger is that instead of having a few bad years, we’ll have another lost decade.”

Mr. Rogoff adds, “If you print enough money, you can create inflation.”

That's what the Fed is doing now.