UBS: Fed is likely behind the curve in shrinking its balance sheet

Source: CNBC

“The Federal Reserve is behind the curve when it comes to shrinking the balance sheet, according to UBS Global Wealth Management’s Kelvin Tay. Fed Chairman Jerome Powell said Tuesday that he expects a series of interest rate hikes this year, along with other reductions in the extraordinary help the central bank has provided during the pandemic. ‘If you take a step backwards and you listen to what he said. He hasn’t actually acknowledged that the Federal Reserve is actually behind the curve — but they certainly are,’ Tay told CNBC’s ‘Squawk Box Asia’ on Wednesday. … ‘at this point in time they are still printing. So you must be wondering why they are still printing at this level, right?,’ he said, adding key developments going forward will be how fast and how much the Fed shrinks its balance sheet.” (01/12/22)

https://www.cnbc.com/2022/01/12/ubs-says-the-fed-is-behind-the-curve-in-shrinking-the-balance-sheet.html