Steven Blitz, US economist at the research house TS Lombard, also expects an adjustment of the program. Things went well for him until President Donald Trump implemented his fiscal policy and "exploded" the supply of government bonds due to heightened debt. Thus, "the abundance of safe papers became an abundance". According to Blitz, this can be seen by the difference between the interest that can be achieved in the market with the lending of securities and the simultaneous repurchase guarantee (repo rate) and the interest on the surplus reserves that are parked at the Fed (IOER). Since the Fed balance sheet has decreased, the difference is positive.
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