Read the blurb below and I will talk on the other side.

Quantitative tightening (QT) refers to monetary policies that contract, or reduce, the Federal Reserve System (Fed) balance sheet. This process is also known as balance sheet normalization. In other words, the Fed (or any central bank) shrinks its monetary reserves by either selling Treasurys (government bonds) or letting them mature and removing them from its cash balances. This removes liquidity, or money, from financial markets.

The Feds paused on raising the Fed Fund Rate. His keyword in Yesterday’s statement was “Financial”. This is what Quantitative Tightening means. They are selling Treasurys (bonds) and those that mature are being removed from its cash balances.

The Fed has a high likelihood of not raising the Fed Fund Rate. In fact with (QT) they could start talking about cut in rates.