One does not simply reduce a $4.5 trillion Fed balance sheet in the background, you know, like watching paint dry. Janet Yellen a.k.a Lady Strange, did not disappoint with her carefully crafted words so as not to pop the stock market bubble.

Fed Balance Sheet Reduction Plan

The Fed plans to reduce reinvestments in Treasuries and MBS’ by $10 billion a month. Every 3 months they will raise the amount until it gets to $50 billion a month.

In the video below, I talk more about the Fed balance sheet reduction plan and then we look at the how the major indices responded today to the news.