Fed’s ‘Murder’ Motive Less Clear, ‘Uncomfortably Long’ Goldman Says

The risk was, and in the minds of many still is, that the Fed will have to do more. That even after 525bps of rate hikes in 16 months, policy isn't "sufficiently restrictive" to curb inflation through below-trend growth. Conceivably, the still huge size of the Fed's balance sheet could be offsetting some of the tightening even as QT proceeds. At the least, we can conjecture that a brisker pace of runoff could be helpful in cooling an economy that's still too hot to be consistent with price stab