Fed Balance Sheet Unwinding
Source: SeekingAlpha
2026-02-04 02:35:00 ET
I ran across an article by David Beckworth that discusses the issues with the reduction of the Fed’s balance sheet (called “Quantitative Tightening” or QT). The issue raised is not one that I spent much time thinking about: the previous expansion of the Fed’s balance sheet (“Quantitative Easing” or QE) has led to behavioural changes in banks (and their clients) as well as regulators....
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Fed Balance Sheet Unwinding
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