Pursuits
Fed's Cut in Its Big Bond Hoard Likely to Begin at Glacial Pace
- Officials uncertain about move’s impact on financial markets
- Dudley says balance sheet drawdown should be a ‘minor event’
Investec's Stopford Sees 2 More Fed Hikes in 2017
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If you thought the Federal Reserve’s interest rate increases have been gradual, wait until you see what it has planned for its $4.5 trillion balance sheet.
The central bank looks likely to begin reducing its bond holdings at a glacial pace given how uncertain officials are about the impact on financial markets, monetary policy and the economy. The aim, according to New York Fed President William Dudley, is to ensure that the drawdown is “a very modest, minor event.”