Sep 20, 2017
By Michael Kramer
The U-S Federal Reserve will begin the process of gradually unwinding its $4.5-trillion-dollar balance sheet – starting next month.
The balance sheet consists primarily of government and mortgage-backed bonds and was expanded to unprecedented levels – as the government tried to spur economic growth – after the 2008 financial crisis.
As the bonds mature, the Fed plans to spend less money each month to replace them.
Starting next month, the U-S central bank intends to spend $10-billion dollars less per month on bonds – which will eventually reach $50-billion a month by October of next year.