Fed Balance Sheet Reduction Incoming
Manage episode 325157301 series 3085687
Late last week the FOMC minutes from the previous meeting were made public. In them we found that Fed chairs are targeting a maximum of $95bn in balance sheet reduction per month starting in May. The figure is made up of $60bn in treasuries and $35bn in mortgage-backed securities. The minutes also made it clear that inflation is recognised as a major problem, and rate hikes are likely to be 50 basis points at each meeting as opposed to the standard 25.
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