"Watch what (the Fed is) doing, not what (it) is saying," says Jim Grant, noting the Fed's...

|By:, SA News Editor

"Watch what (the Fed is) doing, not what (it) is saying," says Jim Grant, noting the Fed's balance sheet has been contracting at a 10% annualized rate. Unless the Fed keeps buying securities, the balance sheet will continue to shrink, i.e. doing nothing is equivalent to tightening policy. It's the best reason yet, Grant says, to expect additional QE.