Fed, interest rates
FED shrinking its balance sheet
Submitted by Optimal Advisor Solutions on May 25th, 2017
There have been many references to the FED shrinking its balance sheet recently. This is a good explanation of what it means and why authorities are being so careful not to surprise markets. **JB**
Federal Reserve officials grappling with the legacy of expansive stimulus would find it difficult to return to the central bank’s precrisis role on the sidelines of financial markets, analysts and central-bank watchers say.