Will Warsh Kill Stock Market Exuberance By Shrinking The Balance Sheet?

The Fed has added $170 billion of Treasuries since December, highlighting ongoing balance sheet expansion even as the departing Fed chair remained silent on the issue for a third straight press conference. The commentary points to continued liquidity support and a potentially important shift in Treasury demand, with implications for rates and broader market conditions.

Analysis

The Fed has added $170 billion of Treasuries since December, highlighting ongoing balance sheet expansion even as the departing Fed chair remained silent on the issue for a third straight press conference. The commentary points to continued liquidity support and a potentially important shift in Treasury demand, with implications for rates and broader market conditions.