[Tell It Right]

I read that the Federal Reserve is planning to lower their balance sheet by $90 billion. That sounds like a lot, but since their balance sheet is $9 trillion, we're talking about lowering it by only 1%.

In other words, if inflation is still way too high and needs to come down, then the only other arrow in the Fed's quiver is to raise interest rates bigly. Or they could change their mind and reduce their balance sheet a lot more.

Either way it lets a lot of air out of the way overinflated market and a lot of new investors are going to have a trial by fire.

[Starboard]

With elections coming up in November, the Fed won’t be able to keep tightening without appearing to ‘interfere’ in the elections. They will have to pause right after summer IMO, thereby not doing what they need to do to get the fires of inflation under control. This of course will only prolong the problem.

[entropy12]

FED has no chair with a pair! LOL that rhymes pretty good haha. You are right, the FED will act cowardly and prolong the fires of inflation. We don’t have Volcker any more.