2min chapter

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Episode 20: For the Fed, the Devil is in the Data; Agency MBS Update

Guggenheim Macro Markets

CHAPTER

The Impact of Balance Sheet Runoff on the Real Economy

The pace of balance sheet runoff is going to double starting in September. Even the Fed admits that the transmission mechanism of the balance sheet to the market and then the market to the economy is not well understood. But I think that the risk is that as rates get more restrictive, the economy slows further - we just don't know when or where.

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