This episode is sponsored by Nexo.ioNEAR and FTX US.

On today’s episode, NLW marks the next phase in the shift in monetary policy. Starting this month, the Federal Reserve is going to allow U.S. Treasurys and mortgage-backed securities held on its balance sheet to expire without renewal. The goal is to reduce the overall balance sheet by billions of dollars per month. NLW explains how we got here, why the market is nervous and what might happen next.

“The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell, research by Scott Hill and additional production support by Eleanor Pahl. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsors is “Catnip” by Famous Cats and “I Don't Know How To Explain It” by Aaron Sprinkle. Image credit: Brendan Smialowski-Pool/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.