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Use code JACK250 to get $250 off tickets to Blockworks Digital Asset Summit\nhttps://blockworks.co/events/digital-asset-summit-2022-new-york/\nUse code \u201cguidance\u201d to get 50% off Blockworks Research:\nhttps://blockworks.co/get-research/\n--\nIn September, the Federal Reserve is set to remove even more liquidity from markets by taking its Quantitative Tightening (QT) program to the next level. Joseph Wang, former senior trader for the Federal Reserve, and veteran banker Chris Whalen, join Jack to explain how this additional wave of monetary tightening will send shockwaves through markets, particularly the two assets that comprise the Fed\u2019s balance sheet: U.S. Treasuries and agency Mortgage-Backed Securities (MBS).\nJoseph argues that the U.S. Treasury will likely enact a \u201cbuyback\u201d program of its longer-duration securities in order to dampen QT\u2019s volatility, and Whalen contends that if the Federal Reserve sells Mortgage-Backed Securities (as opposed to merely letting them mature), armageddon will ensue.\n\nFilmed on August 17, 2022.\n--\nRead Joseph Wang\u2019s latest piece, \u201cThe Marginal Buyer\u201d: https://fedguy.com/the-marginal-buyer/\nFollow Chris Whalen on Twitter https://twitter.com/rcwhalen\nFollow Joseph Wang on Twitter https://twitter.com/FedGuy12\nFollow Jack Farley on Twitter https://twitter.com/JackFarley96\n\nFollow Forward Guidance on Twitter https://twitter.com/ForwardGuidance\nFollow Blockworks on Twitter https://twitter.com/Blockworks_\n--\nGet top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/\n--\nJoseph Wang\u2019s work can be found here: https://fedguy.com/\nChris Whalen\u2019s work can be found here: rcwhalen.com\n--\n(00:00) Introduction\n(01:32) The Effect of Quantitative Tightening (QT) On Commercial Banks\n(21:00) Vulnerabilities in The Treasury Market\n(25:15) The Conundrum in Mortgage-Backed Securities (MBS)\n(32:30) The Fed's Banking "Stress Test"\n(43:43) Swelling Reverse Repo Facility\n(48:22) The Fed's Giant Mortgage Problem\n(59:53) How Far Will The Fed Go In Hiking Rates?\n(1:02:03) Why Is The Fed's Balance Sheet Not Going Down During QT?\n--\nDisclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.