“Keep ‘Em Guessing” And Avoid A Crisis

On Monday evening, we brought you "Dude, Relax: Stanley Fischer Doesn’t See Any Risk Of Another Taper Tantrum." We knew no one was in the mood to talk about Fed balance sheet normalization coming off a long holiday weekend, but we ran the post anyway because it was, frankly, important. Despite Fischer's contention that the debate about portfolio run off has been "limited," there's actually been no shortage of discussion about what tightening-by-balance-sheet would mean versus tightening by