Submitted by ThetaGangThroweway t3_zwj0ve in wallstreetbets
Mega-Lithium t1_j1x9ga1 wrote
The US Federal Reserve has $8.5 Trillion Dollars worth of assets on its balance sheet.
$2.5 Trillion of that is MBS (Mortgage Backed Securities)
In March 2020, it was only $4 trillion
The federal Funds rate AND the unwinding of this monster will cause a massive drop in the stock market
ThetaGangThroweway OP t1_j1xdjqn wrote
Not necessarily as it depends how many buck sales they can do and how long they take to do it. And you know they usually hold until maturity, right?
At the moment, the Fed's focus is bringing the real inflation rate down to the target. In his announcements, Mr Powell cited the consumer price index MINUS materials affected by the war in Europe.
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