Has the Fed Abandoned Risk Assets? | Joseph Wang
Forward Guidance
00:00
The Fed's Quantitative Tightening and Bond Yields Rise
The yield curve has flattened during quantitative tightening, meaning that your long-term bond yields have gone down. I think that has to do with just a risk off behavior. When the Fed is doing QE, everyone's like, yeah, let's buy risk assets and sell treasuries by risk assets. And when you do QT, people become a bit more cautious. That could be a recipe for some dislocations.
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