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Fed Starts Experiment of Letting $8.9 Trillion Portfolio Shrink

  • First assets will mature without reinvestment on June 15
  • Officials uncertain about market impact of accelerated runoff
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Federal Reserve Hawks and Doves Stay the Course on Rate Hikes

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The Federal Reserve is about to start shrinking its $8.9 trillion balance sheet, deploying a second tool along side higher interest rates to curb inflation, though officials don’t know just how effective it will be.