Intro to Quantitative Tightening On June 1st, the Federal Reserve will begin to aggressively shrink its $9T balance sheet through QT. But what even is QT and how might it impact the economy and financial markets? Let's break it down in simple English! 🧵👇
The Federal Reserve begins its quantitative tightening (QT) program on June 1st. This type of contractionary monetary policy has only been done in the US once before (2017 - 2019). This tool is used to reduce liquidity in the economy to combat inflation.
@FinTwitNotes oh this will be quite a bit more exciting than watching paint dry. Thanks, good thread, some new information gained.
@FinTwitNotes Thanks for all this info!🙏Next meeting is on June 16/17 right? Would you say 50 basis point hike is already taken in by the markets and how many furhet hikes are also already incorporated in the price in your opinion?
