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The Fed's Quantitative Easing Strategy
The Chinese have been behaving a lot like rational fixed income investors and shortening the duration of their treasury portfolio. That tells me that we are venturing out as a sovereign nation on the risk spectrum, which could lead to some nasty options in our future. This also brings up the discussion of the normalization of the balance sheet, right? The Fed has been pursuing quantitative easing for the better part of a decade now bought $4 trillion worth of assets.