Which part of future Fed tightening “is now completely up in the air”?
The answer (according to Societe Generale) is in the useful table below… click to enlarge:
It compares the Fed’s ‘Exit Strategy Principles’ of June 2011 with how policy seems to be very carefully developing now, $1,100bn or so asset purchases later.
One other big change here, of course — the rise of a ‘new’ reverse repo for draining reserves (carried out in advance of the first rate hike, say SocGen).
Plus the rise of Larry.
The all you can eat collateral buffet – FT Alphaville