Fed Lays Out Plan to S L O W L Y Reduce Balance Sheet: How Long Will It Take?

Mish Talk:

In addition to hiking today, the Fed announced its Plan to Shrink Asset Holdings Beginning This Year.

Balance sheet reduction hasn’t started yet, nor did the Fed even say when it would start. Since the Fed will announce the start date in advance, its eye would appear to be focused on December.

Once balance sheet reduction starts, the cap will be $10 billion a month rising to $50 billion a month, on a schedule not posted.

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