Will The Dollar’s Rise Crush Central Banks’ Plans?
Forward Guidance
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The Fed's Balance Sheet Guideline
I think Zoltan is recommending that the Fed actually sell some assets. The Fed has never done that before in the last QT, but it's not something that it can't do. My understanding from Zoltan's note is that the Fed might want to raise longer data rates because right now inflation is high economic growth is slow. So rather than putting things on autopilot, maybe they'll get more involved. Having that optionality selling might make sense.
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