Fed’s plan to reduce the almost $9 trillion of assets on its balance sheet
after it stops buying U.S. Treasury and mortgage-backed securities this month.
Those assets have risen $4.8 trillion since the pandemic commenced in early 2020.
Powell said the reduction will be conducted “in a predictable manner,” largely through letting obligations it owns mature rather than outright sales.
Nevertheless, this is a big reversal from the $140 billion in asset purchases it had been making each month to support the economy through the pandemic.
Gary Shilling Bloomberg 9 mars 2022
From QE to QT
John Authers 20 December 2018
https://englundmacro.blogspot.com/2018/12/we-have-known-for-years-that-qe-had.html
Secretary Steve Mnuchin convened calls with the CEOs of six leading banks to confirm they had ample liquidity, in hopes of averting another Wall Street selloff Monday
2018-12-24
https://englundmacro.blogspot.com/2018/12/the-us-treasury-department-raised.html
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