Fed to Shrink Bloated Balance Sheet Gradually


The U.S. Federal Reserve (Fed) is finally ready to shrink its balance sheet gradually.  For a little perspective, back in the days before the 2008 financial panic and the subsequent introduction of Fed asset purchases, known as Quantitative Easing or QE, the Fed’s balance sheet was about 6% of GDP, or less than a trillion dollars back in 2007.  As of June 2017, the Fed’s balance sheet has swollen to almost 25% of GDP or $4.5 trillion dollars.

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by Bluford Putnam via AllFeaturedReports RSS

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