Central banks have quietly reversed most of their pandemic money printing:
Fed balance sheet now 21% of US GDP — lowest since early 2020. Peak was 37% in 2021.
ECB dropped below 40% of Eurozone GDP for first time since pandemic started. Was 65% in 2022.
Bank of Japan down to 103% of GDP from 130% peak. Still massive but shrinking.
Bank of England at 21% of UK GDP — lowest since 2016. Down from 40% in 2021.
The free money era is basically over. Markets are now running on fundamentals, not central bank liquidity. This is the new normal.
Fed balance sheet now 21% of US GDP — lowest since early 2020. Peak was 37% in 2021.
ECB dropped below 40% of Eurozone GDP for first time since pandemic started. Was 65% in 2022.
Bank of Japan down to 103% of GDP from 130% peak. Still massive but shrinking.
Bank of England at 21% of UK GDP — lowest since 2016. Down from 40% in 2021.
The free money era is basically over. Markets are now running on fundamentals, not central bank liquidity. This is the new normal.
