Lacy Hunt, chief economist at Hoisington Investment Management, argues that the Federal Reserve has purchased approximately $290 billion in Treasury securities between mid-December 2025 and June 30, 2026, constituting stealth quantitative easing. Key monetary indicators support this analysis: other deposit liabilities growth reached an annualized rate of 8.9% in the first half of 2026, while commercial and industrial loan growth hit an annualized 14.0%. Hoisington has dramatically repositioned its strategy by cutting portfolio duration from 21 years to under one year. Hunt forecasts long-term inflation between 3.5% and 4.5%, with potential spikes above 5%.
Source: Read the original article
