FED will print $1T next year.

Here is an exerpt from the report on the latest FED meeting.

"To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee will continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee also will purchase longer-term Treasury securities after its program to extend the average maturity of its holdings of Treasury securities is completed at the end of the year, initially at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and, in January, will resume rolling over maturing Treasury securities at auction. Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative."

Add it up: $40B for mortgage-backed securities and $45B Treasury securities for a total of $85B/month. Multiply $85B/mo by 12 months gets us $1,020B or $1T rounded down. NOTE! The $45B purchase (printing for Treasuries) will be the INITIAL PACE!!!