How did the balance sheet get so big that it's now a quarter the size of our entire economy? It was built up over eight years of buying Treasury and mortgage bonds, in the mistaken notion that massive Fed cash infusions into those markets would bolster the economy and foster a return to normalcy."
Saturday, September 23, 2017
Fed's 'Great Unwinding' Begins, And It's About Time — Now It's Congress' Turn To Act | Stock News & Stock Market Analysis - IBD
Fed's 'Great Unwinding' Begins, And It's About Time — Now It's Congress' Turn To Act | Stock News & Stock Market Analysis - IBD:
"Beginning next month, the Fed said it will begin trimming the $4.5 trillion balance sheet simply by not reinvesting the proceeds of some of its maturing Treasurys, and instead letting the principal shrink by about $10 billion a month initially, and then letting that grow to as much as $50 billion a month as time goes on.
How did the balance sheet get so big that it's now a quarter the size of our entire economy? It was built up over eight years of buying Treasury and mortgage bonds, in the mistaken notion that massive Fed cash infusions into those markets would bolster the economy and foster a return to normalcy."
How did the balance sheet get so big that it's now a quarter the size of our entire economy? It was built up over eight years of buying Treasury and mortgage bonds, in the mistaken notion that massive Fed cash infusions into those markets would bolster the economy and foster a return to normalcy."
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