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Most don’t talk about the balance sheet reduction. We’re going to see rates going higher even without rate increases due to the balance sheet reduction.
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Correct.
Taylor rules( not Taylor series) works perfectly and there were some thesis about it.
Few things are clearly working in financial markets
- Taylor rules
- Yield curve inversion
- Kelly Criterion for multi-millionaires and billionaires for asset allocation
FED follows this modified rules
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