, Columnist
Fed’s $8 Trillion Balance Sheet Will Only Grow
Even when the central bank scales back its bond purchases, its stockpile of assets isn’t going anywhere.
Fed Chair Jerome Powell won’t be thrifty with the balance sheet.
Photographer: Al Drago/Bloomberg
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Don’t expect the Federal Reserve to materially shrink its balance sheet for quite some time.
Analysts and economists are coming to the conclusion that U.S. central bankers will keep slowly expanding their $8.2 trillion stockpile for the foreseeable future, even if the economic recovery stays on track and they start to pare back their $120 billion monthly bond purchases.