There is a 100% possibility that the Federal Reserve will raise rates today. As a result, the interest rate outlook won’t be the subject of debate and the interest, more than ever, will be on how the Fed is going to manage its balance sheet. What’s clear is that the Fed’s balance sheet will remain bigger than it was in the past.
Fed reinvestment policy
Should we be worried by the fact that the Fed is reducing its balance sheet? David Buckle from Fidelity is one of those who think not; moreover, he believes that it won’t have any impact on the financial markets.