“No One Knows How This Is Going To Work” Trader Warns
by Tyler Durden
ZeroHedge.com
Apr 4, 2017
“Somebody had better give this all a lot more thought before starting to put potential time parameters on when we might be setting off on this treacherous trek.”
The journey that Bloomberg’s Richard Breslow is referring to is ending the reinvestment of maturing securities held on the Federal Reserve’s bloated balance sheet.
All of a sudden, we’re not hearing it’s a noble goal, deserves study and should start after considerable progress has been made in raising the Fed Funds level toward the neutral rate — the argument upon which the Fed’s dot plots are supposedly based. We’ve just had three Fed speakers, including NY President Bill Dudley, mention the latter part of this year as potentially appropriate. This is a big change and a very big deal.
With all due respect to everyone with an opinion on this subject, no one knows how this is going to work in practice, let alone what it will do to markets.
The Rest…HERE
