Fed Balance Sheet Unwind: Watching Paint Dry or a Train Wreck?

In this report I cover the early market action from London on May 2nd, 2018. I look at the precious metals, the stock market and the dollar.

Today I also talk in detail about the bond market and interest rates and how they have reacted to the Federal Reserve's decision to unwind its balance sheet after years of its unconventional monetary policy of money printing or quantitative easing.

I look closely at how short term interest rates have been accelerating higher since September of 2017 when former Fed Chair Yellen announced the new policy of QT or quantitative tightening.

My conclusion is that the Fed has lost control of interest rates as short term rates are moving higher a lot quicker than short term interest rates. The consequences of the current Fed path could be dire for the U.S. and a world economy.