The Fed announced today that the economy was in such whopping good shape that they plan to start selling off all the assets they accumulated as a result of three rounds of quantitative easing during the Great Recession. Is this a good idea? Is the economy really doing that great? That’s above my pay grade. To be honest, I don’t quite understand why they can’t just light the whole mess on fire and forget about it. Bad precedent, I suppose.
Anyway, just to give you some context, here’s the job facing the Fed. They’ve got a lot of assets to get rid of. I guess we’ll find out soon enough if the economy is doing well enough that the Fed’s selloff doesn’t tank the stock and bond markets. Cross your fingers.