Monday, November 23, 2020

Tag: Dying Petrodollar Could Spell Disaster for the Fed as They Try to Dissolve Th…

Dying Petrodollar Could Spell Disaster for the Fed as They Try to Dissolve Their Balance Sheet

from Rogue Money:
When Janet Yellen spoke at the last FOMC meeting, she reiterated the central bank’s desire to begin drawing down their balance sheet after close to 8 years of stimulus and bond buying. However, those who pay attention more to actions than from words understand that until the Fed actually begins to start selling their bond holdings, talk from the central bank is little more than the same rhetoric they used when promising a rate hike back in October of 2013, and then never instituting one until two years later.

Yet for just this instance let us take Yellen’s words as truth this time, and expect that the Fed will begin drawing down their balance sheet slowly sometime by the end of the year. And this leads us to ask the unspoken question of…