AIA Newsletter April 2024
Another gold stock added to the AIA portfolio
Commentary
Based on the comments from the FED at their last meeting, it now appears they plan to make three rate cuts in 2024. This is down from the six cuts that everyone was expecting recently.
In addition, there were comments that the FED will be scaling back its Quantitative Tightening (QT) regime from $60 billion to $30 billion per month. The FED has been letting securities mature and run off its balance sheet as a way of shrinking its balance sheet, and this has lowered the FED’s balance sheet from $9 trillion to $7.5 trillion.
Scaling back QT is stimulative. If the FED had previously been tightening by reducing its balance sheet by $60B/month and is now going to halve that reduction, that would mean a less tight monetary policy.