Markets Rallying Hard While Debt Limit Increases by $480 Billion
Real Vision: Finance & Investing
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The Fed Is Reducing the Additions to the Balance Sheet
The taper is not actually contractionry, it's just less expansiony at the margin. The treasury is going to reduce its note and bond issuance down because they're not borrowing as much money. And obviously wehave a tea bill shortage. So you look at the fact that those, at some point are going to scale back, at the same time the fed's going to scaleback. But the risk then is, what if ted can't stop ce because something happens in the economy, and the treasury's backing off ic issuant? Now you're talking about a lot more pressure on the downside of the yulcur.
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