The Fed Tightening Cycle - What Are Your Thoughts and Expectations?

The other big aspect of the fed tightening cycle will be balance sheet. We expect them to shrink the balance sheet from about eight point eight trillion to day, down to the low to mid six trillions. That is about three to four times as much in dollar terms as they did last cycle. So it's a lot more. I would also expect them to go more quickly than they did last Cycle at something like double the peak pace,. maybe a peak pace, of a hundred billion dollars per month. And i think they want to get this done on a reasonable time horizon.