JPM's Chang Says Time's Right to Reduce Fed Balance Sheet

The transcript discusses synchronized economic growth and a supportive financial environment, suggesting it's time to move away from a highly accommodative environment. It compares rate hikes and balance sheet normalization, noting different impacts on inflation and growth. Economists predict rate hikes and balance sheet normalization, with a focus on when and how fast these changes occur. The balance sheet is expected to grow, albeit at a slower rate, with a target of $2 trillion by 2022. The market has already anticipated these changes, similar to previous Fed hikes.

In what ways do economists expect the market to react to the upcoming rate hikes?

What timeline has been outlined for the Fed's balance sheet normalization process?