Economics

Wall Street Says Fed Is in Denial About $4 Trillion Dilemma

  • Wall Street sees risk of reserves growing scarce on Fed unwind
  • Demand for short-term cash could wreak havoc on rate policy
William Lee, chief economist at Milken Institute, discusses the Federal Reserve’s rate path and the U.S. eocnomy.Source: Bloomberg
Lock
This article is for subscribers only.

Fixed-income traders are telling the Federal Reserve that it might end up making a big policy mistake.

And it’s not just rising interest rates they’re talking about.