Wall Street Journal (April 7)
“With inflation high and the job market tight… policy makers are inclined to reduce the Fed’s $9 trillion balance sheet at a much more rapid pace than they did during the quantitative-tightening round that began in October 2017, when inflation was much cooler and the unemployment rate was higher.” The resulting “quantitative-tightening tantrum could go on a lot longer than the taper tantrum did.”
Tags: 2017, Balance sheet, Fed, Inflation, Job market, Policy makers, Quantitative tightening, Tight, Unemployment
Market Watch (January 29)
“Federal Reserve Chairman Jerome Powell is giving investors another six weeks to envision a future where interest rates start to climb and its balance sheet dramatically shrinks. Expect a lot of swings in markets until then.”
Tags: Balance sheet, Climb, Envision, Federal Reserve, Future, Interest rates, Investors, Markets, Powell, Shrinks, Swing
The Washington Post (July 5)
The 500 largest nonfinancial companies in America have amassed cash totaling $1.8 trillion on their balance sheets. This is the highest amount (normalized or otherwise) in nearly half a century. Fareed Zakaria, Editor of Newsweek, says the key to getting the U.S. economy rolling again is getting companies to start spending this money on investments, such as plants, in the real economy.
Tags: Balance sheet, Cash, Economy, U.S.
