Holy crap! The reason for the market crash has been found! Newly appointed Fed Chair Warsh's remarks were like a nuclear weapon for the market. He believes the Fed's $7 trillion balance sheet is too bloated, and it must be drastically reduced. A massive balance sheet reduction may follow. This is essentially a liquidity cleansing for the market. We used to think Powell was a hawk, but compared to Warsh, he's practically a dove. Although Warsh also said that the balance sheet reduction is for better interest rate cuts, these two statements are completely opposite to the market's expectations. At least the super-loose cycle we previously anticipated is gone, instead, it has added a lot of uncertainty to the market. This is probably the real reason for the triple whammy of currency, stocks, and gold over the weekend!