US yields capped as Fed takes note of limited market tolerance

Also Interesting

• Turbulences ahead
• Diagnosis
• A Balancing Act

Focal Point

In the January meeting the Fed not only put rate hikes on hold, but also signaled an earlier end to balance sheet unwinding, acknowledging financial market volatility and the risks to growth. We now expect the run-off to end already at the end of the year, leaving the Fed’s assets at around 3.7 US$ tn.