Loose Financial Conditions Have Forced Fed To Shrink Its Balance Sheet

Loose Financial Conditions force Janet Yellen’s hand Last week, the US Federal Reserve announced for the first time its plans for unwinding its $4.5 trillion balance sheet that’s been accumulated over the past decade since the financial crisis. Wall Street has been waiting for such a plan for many years, and now the Fed has revealed its hand, it seems analysts do not know how to react. Qatari Financial Pain From Sanctions Not Severe… Yet The Fed has announced that it will begin to unwind its balance sheet by slowing its reinvestment program. At present, the Fed reinvests all of…