DFVS - No Longer 'On The Q.T.'

By Kevin Flanagan

I don't want to bore you with just another blog post on the Fed. So, instead of debating whether the policymakers at the Fed should cut rates, stay on the sidelines or, dare I say it, raise rates, let's turn our attention elsewhere... their balance sheet. The Fed has been embarking on a normalization path on this policy front since October 2017 by allowing predetermined amounts of its U.S. Treasury ((UST)) and agency debt and agency mortgage-backed securities (MBS) to roll off without being replaced. This drawdown in reinvestments can be considered

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