“This would mean stocks losing considerable support from the Fed. Again, the Fed has spent over $4 trillion supporting the markets since the March 2020. But by the look of things, that will be ending soon.”
USAGOLD note: And let’s not overlook the direct implications to the bond market. The Fed has purchased almost 75% of the debt issued by the U.S. federal government since the pandemic began. Gold, as Summers suggests, might be a canary in the coal mine in this respect.