Reuters/Jamie McGeever/9-19-2022
“Investors’ focus on the Fed’s policy rate is understandable, but they should not underestimate how much the Fed’s other policy lever – quantitative tightening – could tighten financial conditions and crush asset prices even further.”
USAGOLD note: Another stark warning of a potential left field event …… The markets will be forced to absorb $2 trillion in Treasuries and mortgage back securities that previously were going on the Fed’s balance sheet and no one has a clear understanding how that is going to work out – not even the Fed.
