Economics

Fed Starts Experiment of Letting $8.9 Trillion Portfolio Shrink

  • First assets will mature without reinvestment on June 15
  • Officials uncertain about market impact of accelerated runoff
Federal Reserve Hawks and Doves Stay the Course on Rate Hikes
Lock
This article is for subscribers only.

Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

The Federal Reserve is about to start shrinking its $8.9 trillion balance sheet, deploying a second tool along side higher interest rates to curb inflation, though officials don’t know just how effective it will be.