Fed balance sheet

In Pascals comments, he mentions many issues surrounding the recent rate hike. The attached article from John Mauldin suggests the gorilla in the room is not the small 25 basis point rate increase but what the FOMC will do with their balance sheet going forward. If they shrink the balance sheet, this will have a larger tightening impact than the rate change.

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As an aside, signing up for John Mauldin's free essays such as this "Outside the Box" article is recommended.