I've clarified this before, but when I say Federal Reserve b/s I am referring to the balance sheet, of course. Well, this time at least.

And so to a weekend piece from the Wall Street Journal:

  • Many analysts and investors worry that significantly rolling back the Fed's expansion risks disrupting markets and the economy at a time when growth remains tepid
  • The Fed has become "like an octopus"

Some of the issues it refers to:

  • Fed assets now $4.5 trillion
  • From less than $1 trillion a decade ago
  • Since 2013 the Fed has become one of the largest traders with U.S. taxable money-market funds

Last month NY Fed Head Dudley said that while the balance sheet would shrink, it would likely remain above $2tln

The Journal is gated, but if you can access, the article is here