The Fed's new monetary policy may cause a recession

America's central bank, the Federal Reserve, can inject cash into the financial sector to prevent breakdowns during emergencies. One way it does so is the large-scale purchase of bonds. The central bank has racked up nearly $9 trillion in bond securities while responding to various crises. The Fed is saying it will soon dial back this program. The pace at which the Fed tightens monetary policy may create substantial market headwinds.