Fed’s QT will be more complex this time, official says


Quantitative tightening (QT) is now well underway in the US, but there are differences to the last period of balance sheet run-off that complicate the outlook, according to Patricia Zobel.

Zobel heads up the System Open Market Account, the team at the Federal Reserve Bank of New York tasked with market operations.

When the Fed sold parts of its balance sheet between 2017 and 2019, she said, it “went smoothly, during the period when reserves were ample”. However, Zobel avoided emphasising the

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