Fed Says Balance-Sheet Unwind to Start ‘Relatively Soon’
- Decision sets up bond holdings announcement as early as Sept.
- Committee keeps key interest rate unchanged at 1% to 1.25%
Fed Holds Rates, Says Balance-Sheet Unwind to Start Soon
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Federal Reserve officials said they would begin running off their $4.5 trillion balance sheet “relatively soon” and left their benchmark policy rate unchanged as they assess progress toward their inflation goal.
The start of balance-sheet normalization -- possibly as soon as September -- is another policy milestone in an economic recovery now in its ninth year. The Fed bought trillions of dollars of securities to lower long-term borrowing costs after cutting the main interest rate to zero in December 2008.