Link to: Jamie Dimon's Letter to Shareholders
The Fed’s balance sheet has gone from $1 trillion in 2007 to an estimated $4.5 trillion by the end of this year. Some feel the Fed’s QE policies have been too aggressive and ultimately will be inflationary. Additionally, there is a fear that ending QE will be risky and complex, particularly since QE has little precedence.
We cannot predict the future, and it is rational to have a healthy fear of new and untested policies. However, we think it will be helpful to put some of these issues in perspective, too.