Commentary 
Consumer prices were becoming exceptionally high, and policymakers at the Federal Reserve became increasingly worried they were falling behind. Having been forced into buying U.S. Treasurys—a lot of USTs—policymakers wanted to scrap the bond purchases and reverse course before it got to be too late, fearing the resulting overabundance of bank reserves.
While this sounds like something from earlier this year, the story here begins in 1948. Actually, it starts back in 1946. The Europeans having suffered directly the devastations of World War II, and with much of American and undamaged global supply still on a wartime footing, postwar prosperity quickly grew into systemic price imbalances….