Jerome Powell and the Federal Reserve do not see the Fed Balance Sheet runoff creating problems, but the tide may be changing as QT may reverse the virtuous cycle created by QE. Recent housing data has further shown mixed signals and the government is a bit worried about mortgage lenders.Read More
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Bill Dudley gives a candid interview with the Financial Times, covering the business cycle, demographics, fiscal stimulus, the labor market, and the Phillips Curve. The ECB begins to taper, maintaining that purchases will last as long as necessary, while Jens Weidmann pushes for a specific end date.