Wall Street's Uncertainty Grows as Federal Reserve Sells Bonds, Prompting Asset Reconsideration and Investor Concerns

Wall Street is uncertain about its ability to handle all of Washington's bonds, according to the Wall Street Journal. This is due to the fact that Wall Street has struggled to handle the bonds for several years without the Federal Reserve's massive money printing and bond buying. The Fed is now a significant seller, with a monthly quantitative tightening (QT) of $60 billion, which could lead to more trouble in the future. The bond selloff could also prompt the Fed to reconsider shedding assets, as there is currently a shortage of collateral. Additionally, the recent turmoil in stocks and bonds may not elicit the desired reaction from investors, despite the potential to scare Washington policymakers into action.