Fed's balance sheet expands to highest level since early late December 2018

• Federal Reserve's (Fed) assets have increased sharply in the last three months. 
• Markets believe the Fed is doing round four of the QE program. 
• The Fed did three rounds of QE between 2009 and 2015.

Federal Reserve's balance sheet expansion continues.

The total assets have risen by another $13 billion to $4.066 billion - the highest level since Dec. 26, 2018, according to data source fred.stlouis.org.

The balance sheet size has increased by more than $290 billion in the last three months. The Fed has bought treasuries since mid-September to calm money markets.

President Powell has often reiterated that the ongoing bond purchase program is not quantitative easing (QE).

Markets, however, believe the central bank is in effect implementing round four of the QE program. That is evident from the recent rally in the S&P 500. The index has not seen a 1 percent daily drop since Oct. 8 and is currently reporting quarter-to-date gains of 4.3%.