Federal Reserve slashes balance sheet; analysts foresee market downturn amid liquidity drop. March 12, 2024 11:49 am by Alex The Federal Reserve has significantly reduced its balance sheet. Some analysts predict a market downturn due to the decrease in liquidity, which has been exacerbated by 11 interest rate hikes that typically take 18 months for the market to digest. h/t theSilverVigilante See also Florida slashes spending 4 years straight with rainy day fund tripled and no income tax.