Here's Why Stocks Tumbled During Powell's News Conference

The transcript discusses the market's reaction to the Federal Reserve's decision on the balance sheet, highlighting a downturn in yields and stocks. It analyzes Powell's press conference, noting the market's disappointment with the lack of flexibility and empathy from the Fed. The discussion also covers the Fed's strategy on policy and balance sheet management, emphasizing the balance sheet's role and the Fed's data-dependent approach.

In what way did the Fed's approach to the balance sheet differ when loosening versus tightening policy?

What implications does the text suggest about the Fed's understanding of using the balance sheet as a policy tool?