The Fed, Quantitative Tightening, Is a Different Tool to Raising Rates

Marcus ashworth says there are two types of quantitative tightening. The first is the reverse of or quantitive easing, where central banks buy and then sell off their holdings as they mature. This could have a negative effect on financial conditions at the same time that interest rates are going up. Marcus Ashworth: We just don't know whether or not the market, the banking system, lequillity, all these things, could get a bit of a crunches. Let's hope not.