Fed Balance Sheet Dilemma Looms Large for Bond, Currency Traders
- Holdings are the consequence of three bond-buying campaigns
- Officials ponder the challenge of tapering while tightening
Ira Jersey: We’ll Get Three Rate Hikes This Year
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To the chagrin of bond and currency traders, one of the hottest topics of discussion when it comes to the Federal Reserve will probably be left unspoken at Wednesday’s policy meeting.
Despite the likely absence of any public comment on how to whittle down the central bank’s $4.5 trillion balance sheet, several regional bank presidents have pushed recently to get the debate going. How the discussion starts to play out behind closed doors will have big implications for financial markets even with the Fed forecast to keep interest rates unchanged this week.