Fed’s ‘balance sheet’ shift shocks markets - GKFX

James Hughes, Chief Market Analyst at GKFX details the impact of the shift in the Fed policy from rate hikes to more potent weapon of policy tightening - reducing the balance sheet size.

If the market could digest three rate hikes, Brexit and Trump victory over the last 1-1/2 years, surely it can digest the policy shift right? Hughes believes it won’t be easy as a reduction in the Fed’s balance sheet size means unwinding of the QE program.

Listen to the full segment hosted by Tip TV’s Zak Mir for more info on the shift in the Fed policy and markets.

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