The US Federal Reserve is moving into what economist and Bitcoin advocate Lyn Alden describes as a “gradual print” era — a slower, less dramatic expansion of the money supply that could still support asset prices over time. While some investors expected aggressive quantitative easing, Alden argues that the outcome is largely a matter of semantics, as monetary debasement remains the long-term trend.
In her Feb. 8 investment strategy newsletter, Alden explained that her base case aligns closely with the Federal Reserve’s own projections. Rather than an explosive increase in liquidity, the Fed is likely to expand its balance sheet roughly in line with overall bank assets or nominal US gross domestic product (GDP).
According to Alden, this approach is enough to provide mild support for asset prices without triggering the kind of rapid inflationary surge seen during previous periods of heavy money printing. As a result, she continues to favor scarce, high-quality assets while advising investors to rebalance away from overheated markets and toward areas that remain under-owned.
Gradual Money Printing and Its Impact on Asset Prices
Alden’s comments come amid growing debate over whether the Federal Reserve is already engaging in a new form of quantitative easing. While the Fed may avoid labeling its actions as QE, Alden suggests that the end result is the same: steady expansion of the money supply over time.
Data from the Federal Reserve Economic Data (FRED) system shows that M2, a commonly used measure of the US money supply, continues to rise. Historically, expanding credit conditions and money supply growth have been supportive of asset prices, including equities, real estate, and cryptocurrencies like Bitcoin.
This environment tends to favor assets with limited supply, as investors seek protection against long-term currency debasement. However, Alden cautions that gains may be more muted than during previous “big print” cycles, particularly if market sentiment becomes overly euphoric.
Interest Rates, Fed Leadership, and Market Uncertainty
Market uncertainty increased following US President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve Chairman. Traders largely view Warsh as more hawkish on interest rates compared to other potential candidates, sparking concern about tighter monetary policy in the years ahead.
Interest rate expectations remain mixed. According to CME FedWatch data, roughly 19.9% of traders currently anticipate an interest rate cut at the March Federal Open Market Committee (FOMC) meeting, down from 23% just days earlier. This shift suggests declining confidence in near-term monetary easing.
Current Fed Chairman Jerome Powell has offered cautious and sometimes conflicting guidance on policy direction. Despite cutting rates several times in 2025, Powell has emphasized that inflation risks remain tilted to the upside, while employment risks lean to the downside — a combination that complicates decision-making.
