The Fed May Not Be the Master of Its Balance-Sheet Fate
- FOMC may delay drawdown’s start if debt ceiling upsets markets
- September still seen as most likely date for launch of program
OppenheimerFunds' Memani Says Fed Is 'Sitting Pretty'
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The Federal Reserve signaled on Wednesday that it intends to kick off the long-awaited reduction in its $4.5 trillion balance sheet in September, although a final decision to go ahead may not be entirely its to make.
A looming deadline for raising the government’s debt ceiling could end up complicating the Fed’s plans if it significantly disrupts financial markets, particularly for U.S. Treasury securities.