Can Markets Handle Positive Real Rates?

The video tutorial discusses the Euro Dollar butterfly chart, highlighting market perceptions of Fed rate hikes for 2017 and 2018. It explores the impact of real interest rates on the stock market, emphasizing the challenges of positive real rates. The tutorial also examines the Fed's balance sheet dynamics, focusing on reserve shrinkage and its economic implications.

What concerns are raised about the Fed's ability to unwind quantitative easing without market turmoil?

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What does the pink line in the final chart represent, and how does it relate to the Fed's balance sheet?

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What did Jim Bullard suggest regarding the Fed's balance sheet in his interview?

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