The albatross of $617 billion in bonds that mature in over 10 years.
Getting rid of MBS faster and shifting to short-term Treasury bills will be on the list.
In fact, QE started reversing at the end of 2014.
The QE unwind has started to rattle some nerves.
Under tremendous pressure, the Fed sticks to its guns, mostly, and the crybabies are having a cow.
But how low might the Fed’s balance sheet go?
Their “Everything Bubble” is being pricked “gradually,” and they don’t like it.
The “up to” exacts its pound of flesh.
The “up to” begins to matter for the first time.
Here’s my math when this “balance sheet normalization” will end.