FED ENDS BALANCE SHEET RUN OFF EARLY! This is BIGGER Than Rate Cuts!

The stock market reacted negatively to the Fed reducing interest rates by 25 basis points and not confirming that they would do it again. Having extremely low interest rates is not enough. They want to know that an even easier policy is coming soon. But what was largely ignored was the balance sheet. Not only is the Fed going to stop the QT policy, they’re stopping it much sooner than they were going for. This is perhaps the more important factor.

“Global growth has slowed down since the middle of last year”
“Manufacturing down globally”
“Business slowing down globally”
“There is really no reason why the expansion can’t keep going”
“Consumer economy is 70% of the total”
“A downturn. There will eventually be one”
“Living in a new normal”

Markets: Indexes, Bonds, Forex, Key Commodities, ETFs
https://www.cnbc.com/markets/
The two words from Jerome Powell that rocked the financial markets
https://www.cnbc.com/2019/07/31/the-two-words-from-jerome-powell-that-rocked-the-financial-markets.html
Federal Reserve Board - Federal Reserve issues FOMC statement
https://www.federalreserve.gov/newsevents/pressreleases/monetary20190731a.htm
All Federal Reserve Banks: Total Assets | FRED | St. Louis Fed
https://fred.stlouisfed.org/series/WALCL
Transcript of Chair Yellen's Press Conference, June 14, 2017
https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20170614.pdf
Balance Sheets
https://www.yardeni.com/pub/peacockfedecbassets.pdf