Friday, January 13, 2017

Chatter Of Fed Balance Sheet Unwind Spikes Yield Curve


...BULLARD: BAL SHEET ROLLOFF MAY BE BETTER THAN AGGRESSIVE HIKING

...The mechanics of such a process are rather mindboggling, especially coming at a time when even the Republicans are pushing to layer on an addition $9 trillion in US government debt over the next decade, which - all else equal - would mean require more QE to monetize the deficit, precisely the opposite of selling Fed-owned Treasuries.