Proof The Fed Is Juicing The Markets

Charles Brady, senior editor of the FOX Business Network, has put together a remarkable chart that clearly shows the Federal Reserve’s monetary easing policies are not going into the U.S. economy, but instead into the stock market.

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The chart here compares the Dow Jones Industrial Average with the St. Louis Federal Reserve Bank’s adjusted monetary base. It shows the effect of Fed purchases of mortgage-backed and Treasury securities from Fed dealers, whereby the Federal Reserve buys $85 billion total every month from the big banks, hastening the growth in the Fed’s balance sheet to more than $3 trillion.

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