Independent Tracks

Published on December 18, 2023 by Premium

Chair Powell's intention to separate interest rate and balance sheet policy will likely extend quantitative tightening to well into 2025. The Fed has historically linked their interest rate and balance sheet policy together so that the two have always moved in the same direction. But Chair Powell appears to endorse the view that QT can continue when rate cuts are intended to normalize interest rates rather than to add accommodation. With current policy perceived to […]

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