The Pomp Letter
The Pomp Letter
What Happens If The Fed Balance Sheet Contracts?
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What Happens If The Fed Balance Sheet Contracts?

1

To investors,

The Federal Reserve has been forced to take unprecedented actions to combat the COVID-19 pandemic. They conducted multiple emergency interest rate cuts to push us to 0%, while also expanding their balance sheet by more than 75% to a whooping $7+ trillion.

These monetary stimulus actions have quickly created an environment where falling asset…

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