The Fed Feels It's Doing What's Required
Real Vision: Finance & Investing
00:00
Quantitative Tightening and Liquidity
There is concern that the effects will be more a bring a greater strain on the economy going through quantitative tightening than it did for quantitative easing. The market has had a decade, more than a decade, in which to adjust to a very large fed balance sheet and quantitative easing with low intrest rates. So now you have c t, and you're goig to take tha liquidity out,. You're going to see interest rates rise, not just from the policy on the fed funds rate, but probably along the yield curbe. And that will, i think, cause the stock market to value to at least not rise any longer, perhaps even fall.
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