ON FRIDAY (4TH JAN 2019)
Fed Chairman Jerome Powell used his appearance with his predecessors at an economic conference to walk back his previous comments on the Fed's balance sheet policy.
Powell added context to the comment that its wind-down was on "autopilot" by saying that the balance sheet wind-down was supposed to operate in the background while the Fed actively used its interest rate policy to influence the economy.
That added to rally in stocks and a surge in bond yields, as did comments that the Fed is listening to markets and can be patient on interest rate hikes.
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