"[The minutes were] a warning to anyone who thinks that the Fed is going to be more dovish in their fight against inflation. Their message is, 'You're wrong'...The Fed orchestrated a concerted effort to warn the market, telling the market in no uncertain terms that this is serious, this is paramount, we are going to fight inflation."
"Buybacks by corporate clients slowed to their lowest weekly level in 12 months and on a rolling four-week average basis are down year over year for the first time since late 2020."
"With the Fed on deck to start tightening policy...there is a significant risk that buybacks will slow. Such was the case when the issuance of cheap debt provided the funding for many of these repurchases..."Importantly, companies that performed uneconomic buybacks will find themselves with financial losses, more debt and fewer opportunities to grow in the future."The most considerable risk for investors betting on higher stock prices isn't the Fed. Instead, it is the reversal of 'stock buybacks'."
"Chair Powell has sketched out the contours of the upcoming QT program through a series of appearances. He noted at a recent congressional hearing that it may take around three years to normalize the Fed's $9 trillion balance sheet. The Fed estimates its "normalized" balance sheet based on its perception of the banking system's demand for reserves. A conservative estimate based on the pre-pandemic Fed balance sheet size, and taking into account growth in nominal GDP and currency, arrives at a normalized balance sheet of around $6 trillion. This would imply QT at a rate of around $1 trillion a year, roughly twice the annual pace of the prior QT."