Fed Actions Speak Loudly

Last week, in addition to pumping $82.7B to prop up the repo market, the Federal Reserve announced it would be expanding its balance sheet with a $60B/month Treasury buying operation for the next few months.

Sven Henrich of the Northman Trader notes that this is equivalent to $720B a year. He explains that this is more than the entire US military budget, the largest military budget on the planet.

He comments,

Take these actions and place them anywhere else in history (2000, 2007, any time) and this would be called an emergency intervention program.

This raises a serious question. If the US economy is as strong as the government is claiming, why is the Fed taking such serious actions? Actions usually speak louder than words.