We are linking to an article in Bloomberg relative to the Fed Reserve Balance Sheet runoff which we mention each week in the “Monday Morning Kickoff”. This is important to us as we see the balance sheet as the ‘dry powder’ the Fed needs to manage rocky economic times.
We link this article because the U.S. deficits continue to grow and these borrowing needs, in combination with the balance sheet runoff, will have very substantial affect on economic factors in the future (i.e. interest rates).
Unfortunately we seldom see articles on the deficit and/or balance sheet runoff–it is nice someone is paying attention.