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Ok, Sure! I’ll Take A Look At That Fed MBS Runoff Vs. S&P Returns Note…
Over the weekend, we spent quite a bit of time talking about the Fed's balance sheet and the extent to which Powell's dovish relent on the rate path (as reinforced by multiple Fed officials and also by the December minutes) may mean that the only "escape valve" going forward will be to halt or tweak the pace of runoff if market volatility comes calling again.
Long story short, the mammoth rally in risk assets off the December 26 overnight lows appears to be predicated entirely on the assumption
Outstanding description.