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‘The Fed is breaking things’ – Here’s what has Wall Street on edge as risks rise around the world

The Fed has embarked on its most aggressive series of rate hikes since the 1980s. From near-zero in March, the Fed has pushed its benchmark rate to a target of at least 3%. At the same time, the plan to unwind its $8.8 trillion balance sheet in a process called ‘quantitative tightening’ has removed the largest buyer of Treasurys and mortgage securities from the marketplace. The dollar is helping to destabilize overseas economies because it increases inflationary pressures outside the U.S., Barclays global head of FX and emerging markets strategy Themistoklis Fiotakis said Thursday in a note. The Bank of England was forced to prop up the market for its sovereign debt on Wednesday after the government unveiled plans to stimulate its economy. . . .

Read more at www.cnbc.com