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Here’s the Fed’s new plan for shrinking its balance sheet

By dailymail / Published on Thursday, 15 Jun 2017 01:15 AM / No Comments


The Federal Reserve released a new strategy on Wednesday on how it will gradually shrink its $4.5 trillion balance sheet.

The Fed’s new plan, which it expects to implement this year, will be “a gradual and largely predictable decline.”

May meeting minutes indicated officials had begun a discussion about putting a set limit each month on the amount it would let run off as it conducts its policy of reinvesting proceeds.

Here is the Fed’s strategy: