Morning Meeting: Fed's Pace of Normalization

The video discusses the concept of balance sheet normalization and its implications for monetary policy. It explores the interaction between balance sheet and interest rate policies, highlighting the challenges of reversing quantitative easing (QE). The discussion includes the market's reaction to policy changes and the future outlook for interest rate hikes. The video emphasizes the complexity of managing both short-term and long-term interest rates and the potential impact on the housing market.

How does the market's expectation around balance sheet policies influence interest rates?

What lessons were learned from the market's reaction during the taper tantrum?

What is the potential impact of moving from one hike per year to one hike per quarter?