Fed Shakes Up Global Markets as US Interest Rates Rise

``McCarthy said the markets also appear to be overreacting. "We're going to live with a large Fed balance sheet for a while. It's not like they're going to start sponging liquidity up. Liquidity is going to keep floating around there for at least a couple of years. This is not tightening. They're basically managing the second derivative of a balance sheet policy," McCarthy said.''