The Fed’s balance sheet represents an underappreciated risk right now

It’s not the market risks feared by the consensus that matter most; rather, it’s the unforeseen developments that tend to do the most damage to investor portfolios. Adam C. Rudd, CFA, investment director at Standard Life Investments, shares his latest thoughts on the U.S. Federal Reserve's bloated balance sheet—and what such an outsize monetary base really represents in a regime of rising policy rates.