Will Fed Balance Sheet Shrinkage Impact Volatility? Feb 14, 2022 View in your browser Impact of Balance Sheet Shrinkage By Erik Norland, Senior Economist CME Group Balance Sheet Shrinkage and Market Volatility Fed balance sheet has grown by almost 90% to nearly $9 trillion since pandemic Unwinding of Fed asset purchases to be followed by shrinking of balance sheet Equity index options trended higher during 2017-19 reverse quantitative easing Gold, 30-year bonds tend to trend sideways or higher during balance sheet shrinkage Read article SEE MORE ANNOUNCEMENTS