FOMC mulls ‘predictable’ balance sheet wind-down
One member says a “minimum pace” should be set for the reduction in mortgage-backed securities
To promote a “rapid normalisation” of the size US Federal Reserve’s balance sheet, one member of the Federal Open Market Committee (FOMC) has suggested setting a “minimum pace” for reductions in mortgage-backed securities holdings.
At the Federal Reserve’s latest monetary policy meeting, members of the FOMC discussed how to approach balance sheet normalisation, the majority agreeing reductions in securities holdings should be conducted at a “gradual and predictable pace”.
“Many participants
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