Oxford: Fed Needs To Go On A Balance Sheet Diet, Not Scare Markets

With the goal to “avoid a possible market tantrum,” an Oxford Economics piece discusses the delicate topic of the Fed losing some weight in its bloated balance sheet – an unwanted side effect of snacking on too many simulative goodies that have very little nutritional value.

Fed needs to avoid market "tantrums"

There are two issues to consider, the January 14 report from Oxford’s Gabriel Stein, director of asset management services, notes. Shrinking the Fed balance sheet is not only a market concern – and avoiding a market “tantrum” in an election year is well advised. Alongside "tantrum" concerns, there is also...