In the spirit of Brexit and Frexit, Central Bankers are now intimating that we may approaching the uncharted waters of QExit. The Fed has begun to make overtures to the markets regarding the normalization of its balance sheet, leaving everyone to speculate as to what a shift in the composition of said balance sheet may look like. Having said that, some at the Federal Reserve are also expressing concern that a re-normalization of the balance sheet might leave it vulnerable to an external global shock. Given that our sitting President is a “low interest guy”, any destabilizing move by the Fed would most likely be met with substantial political fallout, or a series of angry tweets at the very least. In short, while the Fed may allow some recomposition of its balance sheet due to simple portfolio runoff, don’t expect any major shifts forthcoming.