If the Fed does this the 10 year yield could go to 6-8%. RIP housing if this were to play out.

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Fed’s $7.3 trillion balance sheet is worrying the world’s largest asset manager. Here’s why.

Changes to how the Federal Reserve manages one of world’s most crucial piles of assets pose “underappreciated” risks to financial markets, BlackRock warned in a Friday client note.

The Fed in early May said it plans to switch up how quickly it will look to shrink its $7.3 trillion balance sheet beginning June 1, a move that was “barely a side note” in financial markets, according to Tom Becker, portfolio manager at BlackRock’s Global Tactical Asset Allocation team.

See also  Buffet said if you asked me to invest $25B for 1/4 of all farm land and $25B for 1/4 of all income properties he do it tomorrow. If you offered him 1/4 of all Bitcoin for $25dollars he wouldn’t do it. Best investor in history could be into something….

https://www.marketwatch.com/story/feds-7-3-trillion-balance-sheet-is-worrying-the-worlds-largest-asset-manager-heres-why-a1e83dc7