Fed’s Williams Wants to Shrink Balance Sheet by $2.5 Trillion
Fed’s Williams Wants to Shrink Balance Sheet by $2.5 Trillion by Dr. Fly – iBank Coin
It’s Friday, so don’t expect anyone to pay attention to the Fed comments made today. But they’re off their fucking rocker again — discussing the specter of raising rates AND reducing the balance sheet — at the same time. If you’re a student of history, like myself, you’d know that any time the money supply was fucked with and greatly reduced, subsequent crashes ensured.
Well, what do you think will happen to stocks if the Fed reduced their balance sheet by $2.5 trillion and hiked rates to boot?
Here are the lowlights.
Fed’s Williams says wage growth has been stubborn; Would like to see jobs growth get to 180K; Believes April data showed that Q1 was an aberration
Fed’s Bullard says it is odd that Fed is raising short term rates and not shrinking its balance sheet; Fed’s Rosengren says that Fed will hit zero rates and could also theoretically expand the balance sheet in future recessions
Fed’s Wiliams sees U.S. at full employment, maybe a little beyond; Fed’s Bullard says could shrink the balance sheet to as low as $2 trill