The fretful von Pepe sends this article, which quotes a JP Morgan analysis saying that with the new policy announcement, the Fed may very well end up adding (“almost”) the equivalent of the entire federal deficit next year to its balance sheet. In other words, the US government is going to spend more than it takes in, and the Federal Reserve will create new money and (indirectly) lend it to the US government to cover this entire shortfall.
But if I understand the views of David Beckworth and other Market Monetarists, this is irrelevant. The only time we need to start worrying about the Fed “monetizing the debt” is when the percentage of the stock (not the flow) of Treasuries owned by the Fed worldwide, falls
below above pre-crisis levels.