This is CBS Eye on the World.

Here's John Batchler.

The American economy, the global economy, all turning on interest rates and central bankers,

except there are new considerations outside of the Federal Reserve and the Bank of England

and the European Central Bank.

That has to do with the American debt limit and I welcome Liz Peak, a columnist at the

Hill, a commissate Fox News, much on Fox Business to interpret an extremely complex headline

I get from Bloomberg that I went, I better get my pencils out and start calculating.

Debt limit fight risks early and to Fed quantitative tightening.

Before I go any farther, Liz, a very good day to Fed quantitative tightening.

I forget what that means.

Help me understand the headline.

Good evening to you.

Good evening.

Actually, it is the part of the tightening cycle that is getting the least attention, John,

and it's probably the most important.

As you may have remembered during COVID shutdown and after in the aftermath as the Fed was trying

to boost the economy, the Fed bought trillions of dollars worth of bonds, including mortgage

back bonds, to basically put money out into the economy.

Their balance sheets swelled from, I'm guessing it was two or three trillion in the beginning

to around seven or eight.

It was an unprecedented intervention by the Fed, which had nothing to do with interest rates,

...