The Fed Is Getting New Rules of the Road Ready for Balance Sheet Unwind
- Economists see change to "principles" as soon as this month
- Fed is moving faster on balance sheet plan than many expected
The Marriner S. Eccles Federal Reserve Board Building stands in Washington, D.C., U.S., on Tuesday, Nov. 30, 2010.
Photographer: Joshua Roberts/BloombergThis article is for subscribers only.
Federal Reserve officials surprised some onlookers by unveiling a rough plan for balance sheet runoff in the minutes for their May meeting. They were so on top of things, in fact, that many economists think more formal guidelines could come as early as this week.
“It could be June, it could be July -- I certainly would not expect it to be any later than July,” said Lou Crandall, chief economist at Wrightson ICAP LLC. “The process is moving very quickly.”