The Federal Open Market Committee (FOMC) will raise interest rates before it begins to unwind its $4.4 trillion balance sheet, as a growing minority of members are voting to hike rates with immediate effect.
Announcing new principles for monetary policy ‘normalisation' alongside its latest interest rate decision, the FOMC confirmed it expects to cease reinvestments in balance sheet assets amassed through quantitative easing after it begins increasing the target range for the federal funds rate.
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