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Accelerated balance sheet reduction threatens to intensify already fragile trading conditions
Predictability and principles should win
Toxic combination of high debt and the shrinkage of central bank balance sheets greatly increases the risk of financial crises
Strong dollar and the unwinding of quantitative easing are equivalent to 1 percentage point rate rise
And if so, how?
Deciphering the mixed signals of monetary policy
Central banks are starting to shrink their balance sheets, but fund managers say they have no clue as to how QT will play out
The next step in the European monetary and political experiment has to be more radical than the last
US central bank’s move to reduce $9tn balance sheet comes alongside steep rate rises to tackle persistent inflation
Or on rate volatility
Inflation pressures and asset bubbles are a sign that the central bank has been distracted from its core mission
The era in which American monetary policy could rely on the ‘Goldilocks’ scenario is receding
Central bank choices will always help some people more than others
US officials plan to reduce holdings amassed during the pandemic by up to $95bn a month
Asset shedding plan comes as US central bank likely to implement 0.5% rate rises at future meetings
US central bank is set to unwind massive pandemic-era stimulus measures
The likely cost of suppressing inflation is a reduction in Fed balance sheet accompanied by recession
And is the bond market just stupid?
And the return of services
Don’t count on the central bank intervening over market volatility
Markets could soon see a shortage of buyers for some assets relative to supply
Powell is unlikely to surprise watchers today, but tightening could come at a sharper-than-expected tick later this year.
Christopher Leonard’s compelling account of central-bank decision-making — and why the 2008 financial crash never really ended
Putting greater emphasis on quantitative tightening would be an important sign of independence
Not even the central bank has a clear idea
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