Citi's Mann on Exiting Quantitative Easing

The transcript discusses the current state of credit markets, highlighting the impact of the Federal Reserve's rate hikes and the Treasury's issuance of bills. It explains the role of Quantitative Easing (QE) in making money cheap and its reversal leading to higher credit costs. The transition from forward guidance to data dependency in Fed policy is explored, emphasizing the importance of analyzing economic data. The Fed's strategy of running the balance sheet on autopilot is discussed, along with market reactions to these policies. The overall theme is the shift towards normalization of monetary policy after a decade of QE.

Discuss the significance of forward guidance in the context of quantitative easing.

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What are the implications of having the balance sheet on autopilot for monetary policy analysis?

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