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Central Banks Shrink Their Footprints, Says Northern Trust

Original: Central Banks Shrink Their Footprints - Northern Trust - Commentaries

Northern Trust commentary argues that central banks are pulling back from their expanded footprint in markets. As post-pandemic policy tightens and balance sheet reduction programs continue, the commentary suggests policymakers are stepping away from the outsized role they played in recent years, with implications for liquidity, bond markets and the broader financial system that investors are weighing.

Why now: Investors are focused on how quantitative tightening and central bank balance sheet reduction will affect markets.

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