Fed researchers plot balance sheet exit strategy
Researchers at the Federal Reserve have released projections that suggest the balance sheet could return to normal size by 2018–19, without having a drastic effect on the Fed's income.
According to the Fed's latest balance sheet figures, published on January 17, total securities holdings stand at nearly $2.7 trillion. The figure is growing at a rate of $85 billion a month as a result of the Fed's quantitative easing programme, which is set to continue until unemployment falls below 6.5%.
In the
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