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    The Fed Is About To Drain Trillions In Liquidity: Here's How It Will Do It

    January 26, 2022
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    A map of the 12 districts of the United States Federal Reserve system
    Image by Nkocharh;

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    While traders are mostly focused on what the Fed will say about the coming rate liftoff, with markets today expecting just over 4 rate hikes by the end of 2022...

    ... a much more relevant question is what the Fed's balance sheet runoff - i.e., Quantitative Tightening (QT) - will look like both strategically and tactically.

    As a reminder, two weeks ago Deutsche Bank predicted some $3 trillion in balance sheet normalization as the Fed undoes the emergency actions from the covid crisis which doubled the Fed's asset holdings from 20% to almost 40% of GDP...

    To read more visit Zero Hedge.

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    The mission at Creative Destruction Media is to be the catalyst for the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one."
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