It’s Not The China Trade War—It’s The Fed’s Bond Dumping (QT) Campaign

But then January rolled around, and with it, so too did something else. Only this time it was the sound of a door swinging. i.e., Ms. Yellen exited stage left from the Eccles Building. Yet, what was interesting was what went along with her. i.e., The pretense that the Balance Sheet run-off wouldn’t disrupt the “markets.” Hint: Largest point drop in markets history.

Let’s see, Ms. Yellen says “See ya!” along with the “markets” get their first glimpse that in deed the balance sheet reduction had begun. And what was the result?