The FED seems to have made a decision

They appear to be in favor of reducing their balance sheet
I'll believe it when I see it.
If they have chosen to be responsible, the market may dump for a little while, but should eventually recover with relatively less pain

cnbc.com/2022/05/25/fed-minutes-may-2022.html

>On the balance sheet issue, the plan will be to allow a capped level of proceeds to roll off each month, a number that will reach $95 billion by August, including $60 billion Treasurys and $35 billion for mortgages. The minutes further indicate that an outright sale of mortgage-backed securities is possible, with notice of that happening well in advance.

Also see @ 4:59
youtube.com/watch?v=wuoNd3wGQZ4

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youtube.com/watch?v=DHY8sWt7EOE
twitter.com/NSFWRedditVideo

>muh economic theories
just fucking buy? Who cares about rates...literally, just pretend they don't exist.. they have no effect on retail

Good. I'll be accumulating along the way, accelerating later in the year.

>rates
>no effect on retail
kek
stay poor goy

my friend you are the king of redards
have you slept during the last 3 years
it has never been more obvious that the FED is the most significant player in markets

What does “rolling off” mean? I assume selling these assets, but then who is buying these assets?

Please be true. I can't stand watching my alts bleed like pigs anymore.

the banks
look up on how reverse repo markets work

you're a fucking idiot
OP what the fuck are you talking about 'unwinding' the balance sheet.
It has never, ever been done. They are the single largest holders of the United States Government Debt Issuance by a fucking wide margin. The Government itself is spending trillions more than they receive, and this will need to be raised... in an open market auction at 0.75/1.25/1.75% interest?!

Are you guys literally this fucking stupid, wake the fuck up. This isn't opinion anymore this is math, nobody to believe or follow, argue with.. none of this is up for debate anymore.
The physical fucking continent is great, the problem is what this dumb fucking population has decided to do since essentially giving up being productive, using foreign labor to accomplish ridiculously stupid pursuits fuelled by debt.

I am very, very fucking surprised there are still people that know even the basics of the Federal Reserve functioning, like OP, who are still retarded enough to care about what they have to say.

Less than 100 billion out of almost 10,000 billion. At that rate it will take over 10 years to sell it all. They will resume purchasing way before that point, within 2 years the balance will be reaching new all time highs. You're delusional to think they will actually follow through to any extent that actually matters.

as I said, Ill believe it when I see it
but the fact remains, theyve stated their intentions

>SPY 2800
Please let this happen

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>"severe, potentially unrecoverable crash"
this will end badly

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We just saw that herd mentality is more of a factor, their reaction to the fed was the mass panic sell.
your chart isn't scaled correctly it makes the fed dumping look bigger than it really is.

the dumping is priced in we go up from here.

youtube.com/watch?v=DHY8sWt7EOE

This is the ultimate redpill video I know no one will watch it, but like this guys says the fed is like an alcoholic who keeps claiming tomorrow I’m going to stop drinking but never actually does.

>Stansberry Research
lol

I’ve seen that video and I agree with him.

this guy speaking facts

maddening, isn't it? now imagine "the fed tightening" being the driving narrative on this board for almost two years now

you guys are paid market fudders spreading narratives

go back to listening to (k)ramer and boomerberg