Well, it’s official. As was widely expected, the Fed announced today that it would increase the size of QE to $85B per month from $40B per month. Below is an updated forecast of what the US monetary base could look like to start 2015 if QE lasts that long (for the record, my money says it wont). At its peak growth rate, the base will increase by ~40% y/y. Under the previously announced program the base was slated to grow by a robust 17%. By 2015 the monetary base could be nearly 6x the size it was in 2008.