Federal Reserve to halt balance sheet runoff
- US Market
- 2 months ago
The Federal Reserve has given signs that it intends to conjure a plan to stop letting go of $4 trillion in bonds and several other assets, although policymakers are still unclear as how long the dovish stance will last in regards to raising rates will last.
For the meantime they see little risk to leaving interest rates alone while they take time to assess rising risks, including a global slowdown, according to a release of the Fed’s meeting at the end of January.
Though “several” participants thought a rate increase would be necessary only if inflation unexpectedly surged, “several other participants indicated that, if the economy evolved as they expected, they would view it as appropriate to raise the target range for the federal funds rate later this year.”
Source: Smart Trend Team