The idea of “normalization” has been a constant theme for investors since the financial crisis of 2008. The market impact and the steps taken in response—particularly by global central banks—were so extreme that there now seems to exist in the psyche of investors some form of pre-crisis normalcy that we’re all trying to get back to.

But what even is normal? The Federal Reserve has been leading the charge in this respect, and has regularly used that verbiage. It is currently “normalizing” the balance sheet and has been raising short-term rates since 2015 to get to “more normal” levels.

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