# In an op-ed, Professor Anthony Karydakis explores how financial markets might respond to a shift in the Federal Reserve's reduction of its securities holdings

1 Faculty News May 22, 2018 ![Wealth Management logo 192 x 144](/sites/default/files/styles/246w/public/assets/images/wealthmanagement192x144.jpg?itok=4j4MlzRT)>

Excerpt from [Wealth Management](http://www.wealthmanagement.com/fixed-income/fed-s-balance-sheet-normalization-what-if) -- "So, what would be the implications for bonds and equities if a dynamic developed that forces the Fed to suspend its portfolio normalization process? The strongly intuitive answer is that it would trigger a major rally in Treasurys, with the 10-year yield eyeing the 2 to 2.5 percent range, or possibly lower, and cause a sharp pullback in equities on the order of at least 10 percent."

[Read more](http://www.wealthmanagement.com/fixed-income/fed-s-balance-sheet-normalization-what-if)