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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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ajtj99
Lee Lichterman III
towerdog
To: Jacob Snyder who wrote (52269)2/19/2022 4:18:50 PM
From: Jacob Snyder3 Recommendations  Read Replies (1) of 96463
 
QT likely to begin in 2H22:

From latest Fed minutes:

"A number of participants" said that conditions would likely warrant starting to shrink the balance sheet "sometime later this year.”

"Participants observed that, in light of the current high level of the Federal Reserve's securities holdings, a significant reduction in the size of the balance sheet would likely be appropriate," the minutes said.

Inflation figured prominently in the minutes, with the word appearing 73 times…

Federal Reserve official agreed that current economic and financial conditions "would likely warrant a faster pace of balance sheet runoff than during the period of balance sheet reduction from 2017 to 2019," … seekingalpha.com

My comment: 3-5 rate hikes in 2022 are in stocks. 6+ rate hikes are not. QT is not. The Fed will do QT and rate hikes till something breaks. Something big.
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