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By Eddie van der Walt

August 30, 2022 at 10:41 AM UTC

Quantitative tightening, Russian gas, and a survey on China.

The Federal Reserve's quantitative tightening program will ramp up this week. As part of a broader plan to reduce a $9 trillion portfolio, the Fed will boost its monthly caps for the amount of Treasuries and holdings of mortgage-backed securities that it will let mature. For some investors, the withdrawal of support is a good reason to be pessimistic on this market. Greg Jensen, co-chief investment officer of Bridgewater Associates, is in that bear camp. In an interview with Bloomberg Television, he predicted that rate hikes will drive down both inflation and economic growth, sending asset markets to declines on the scale of 20% to 25%.