Fed's Quantitative Tightening Begins as Americans Deal With Historically High Inflation

Concerns about economic growth are weighing down sentiment on Wall Street, as investors also monitor the uncertain impact of the Federal Reserve's quantitative tightening - the process of reducing its $9 trillion balance sheet it built up over the course of the pandemic. The Fed's QT is meant to normalize monetary policy while bringing down inflation, something the White House calls a 'top economic priority.' As Americans cope with higher prices for everyday essentials, Treasury Secretary Janet Yellen admitted that she was wrong about inflation being 'transitory,' as extenuating factors have caused inflation from the pandemic to worsen. JPMorgan CEO Jamie Dimon also weighed in on inflation and the state of the economy, warning investors to brace for a so-called economic 'hurricane' due to impacts from inflation and Russia's war in Ukraine. The still-tight job market is putting pressure on the economy as well, as the latest JOLTS report shows job openings in the U.S. are down from record highs but remain high.
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