Fed balance sheet reduction almost always ends in recession - InvestingChannel

Fed balance sheet reduction almost always ends in recession

“The Federal Reserve’s looming attempt to shrink its mammoth portfolio of bonds comes with an ugly track record: Virtually every time the central bank has tried it in the past, recessions have followed… The Fed has embarked on six such reduction efforts in the past — in 1921-1922, 1928-1930, 1937, 1941, 1948-1950 and 2000.”