The wild card that could sink stocks: What investors need to know as the Fed unwinds liquidity that helped fuel market gains

Stock market wildcard: What investors need to know as the Fed shrinks its balance sheet at a faster pace

Quantitative easing is credited with boosting stock returns and boosting other speculative assets by flooding the markets with liquidity as the Federal Reserve clawed back billions of dollars in bonds after the financial crisis and in the amid the coronavirus pandemic. Investors and policymakers may be underestimating what happens when the tide goes out. “I …

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