Fed Balance-Sheet Unwind Is a Nonevent, Strategas' Tzitzouris Says

The video discusses the importance of the Fed's rate hike path over its balance sheet in 2019, highlighting the market's reaction to rate projections. It analyzes inflation trends, predicting a rise above 2% due to wage growth and low unemployment. The Fed's balance sheet strategy is examined, noting market reactions to potential changes. The impact of European yields on US yields is explored, emphasizing the limitations on the Fed's ability to tighten. Finally, concerns about leveraged investments, particularly by Japanese banks, are raised, indicating potential risks in the market.

How does the Fed's balance sheet size relate to investor sentiment?

What is the significance of the US yields being too low compared to European yields?

What concerns arise from leveraged investors buying risky investments?