
Mustafa Chowdhury on Mortgage Risks, Fed Shocks and Derivatives
Macro Hive Conversations With Bilal Hafeez
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Quantitative Tightening
The mortgage portion is very little. The Fed's reducing the balance sheet, the mortgage portion,. They keep saying it, but they don't have a way of reducing the mortgage portion without creating serious turmoil in the mortgage market and the housing market. So so far, the effect of QT is quite small. It will remain small. And that's what's affecting mostly the reserves of the banking system.
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