Fed’s faster ‘quantitative tightening’ adds to strain on bond market

Financial Times/Ethan Wu and Kate Duguid/9-13-2022

“The Federal Reserve’s more rapid exit from crisis-era policies is set to place the $24tn US government bond market under extra strain, heightening concerns about the bedrock of the global financial system.”

USAGOLD note: This article delves into the effects of quantitative tightening on the already wobbly market for U.S. Treasuries. There may be a liquidity shock ahead which, as one analyst quoted puts it “is a fancy way of saying panic.”