CLS Bank's Kos Says Fed Wants to Normalize Balance Sheet

The transcript discusses the Federal Reserve's plans to reduce its balance sheet and potentially hike interest rates, emphasizing Janet Yellen's goal to normalize these financial measures. It highlights the Fed's data dependency and market reactions, noting that current market conditions are more accepting of Fed tightening. The discussion also touches on potential changes in Fed policy due to market dynamics and external factors like hurricanes.

What challenges does the Federal Reserve face in maintaining its balance sheet reduction strategy?

In what ways might the Federal Reserve be influenced by market conditions in the coming months?