With Liftoff Done, the Fed Revisits a $4.5 Trillion Quandary

  • Fischer wants to use balance sheet to lean on long-term rates
  • Market turmoil may push back rate rises, balance-sheet plans

Stanley Fischer, vice chairman of the U.S. Federal Reserve.

Photographer: Andrew Harrer/Bloomberg

Federal Reserve officials who spent months debating their first interest-rate increase in almost a decade are turning next to the thorny question of what to do with a balance sheet equivalent to the size of Japan’s economy.

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