Earlier today, the monetary drug pushers at the Federal Reserve gave the addicts on Wall Street exactly the fix that they have been craving.
In fact, not only did Powell deliver exactly what the doctor ordered with respect to interest rates, saying the Fed was going to remain "patient", probably indefinitely, with respect to another rate hike, but Powell also made it clear that the balance sheet wind-down, otherwise known as quantitative tightening, was off of auto-pilot.
In fact, based on what Powell said, I would be surprised to see any significant reductions in the Fed's balance sheet from here. Not surprising, the market rallied as a result of getting what they wanted out of the Fed.
- Source, Peter Schiff
