The Fed's balance sheet has actually been contracting at an annualized pace of 6% this year,...

|By:, SA News Editor

The Fed's balance sheet has actually been contracting at an annualized pace of 6% this year, notes Andy Lees. Lees, however, may draw the wrong conclusion, saying the decline "does not seem indicative of the Fed about to launch (QE)." Instead, one might think a shrinking balance sheet is raising alarms at the Fed, which will now want to launch QE to reverse it.