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No One Knows How the Markets Will React to the Federal Reserve's 'Quantitative Tightening'

Here comes quantitative tightening by the Fed.
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The Federal Reserve was the most specific it's ever been about its balance sheet in its July statement on Wednesday.

The Fed said its balance sheet normalization process will begin "relatively soon." In its June statement, the Fed said the process would start "this year."

It remains unclear how the markets will react to the normalization process, according to Danielle DiMartino Booth, author of Fed Up, who calls the unwinding of the Fed's assets "quantitative tightening."

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