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Keith Noreika Quoted in IFLR on the Fed’s Balance Sheet Normalization Program
02.01.19
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Partner Keith Noreika was quoted in an IFLR article titled “Banks: Fed balance sheet normalisation is not causing equity runoff,” which discusses the suggested relationship between the U.S. Federal Reserves’ balance sheet normalization program and the recent equity market selloff. In the article, Keith discusses the genesis of the Fed’s normalization program. “They are taking out excess liquidity that was put in the marketplace in very unusual times during the financial crisis, and we are ten years from that now,” he said.
In addition to discussing the Fed’s normalization program, Keith also highlighted that while the stock market was experiencing volatility, the underlying assets were not. “It’s hard to know what causes stock market volatility, but the underlying asset markets seem more stable, which is good,” Keith said.
To read the full article, please click here (subscription required).