The Federal Reserve’s balance sheet reduction continues to threaten the stock market, despite nearing the end of its rate hikes, Business Insider reports.
Ned Davis Research emphasized in a note on Thursday that the Fed’s quantitative tightening could impact stock prices and other risk assets.
Since June 2022, the Fed has decreased its balance sheet by $900 billion to $7.6 trillion. This reduction was despite the Fed’s $400 billion liquidity injection to manage the regional banking crisis in March.
