As I’m sitting here watching the presser with Fed Chair Powell, I just heard what I believe is all one needs to know – and the only thing – the “markets” are concerned about. And here it is:
At approximately 2:40pm ET the Chair was asked about the balance sheet and here’s the response, paraphrasing:
“The balance sheet is on auto pilot, we’re going to let that continue, we’re not changing it, we’re going to only adjust policy by rates.”
The market has been in free-fall ever since. If it continues? You now know why.
© 2018 Mark St.Cyr