IVOV - The Fed Unveils The Largest QT Program In History: How The Markets May React

May, 08 2022 07:53 AM Vanguard S&P Mid-Cap 400 Value

This updated article looks at the potential impact of the newly released QT schedule and subsequent market effects of four quantitative easing programs.
On March 9th, 2022 the Federal Reserve conducted their final open market purchase effectively ending the Covid QE 4 program started in March 2020.
On March 16th the Fed hiked rates 25bps, then 50bps on May 4th with plans to conduct at least 5 more rate hikes for 2022.
On May 4th, the Fed announced their quantitative tightening (QT) schedule to reduce their $9 trillion balance sheet by nearly twice the rate of the last QT event in 2018.
A major focus of this article is on the quantitative tightening period and how that may again impact markets in 2022.

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