St Louis Fed explains Fed’s plans to unwind balance sheet
Fed expected to stop replacing maturing securities to reduce $4.5 trillion balance sheet
The Federal Reserve Bank of St Louis explains how the US central bank can unwind its balance sheet in a new podcast on its website. The US Federal Reserve Board is more likely to allow securities to mature, rather than selling them, says David Wheelock, vice-president and deputy director of research.
The Fed’s balance sheet has expanded to $4.5 trillion from $925 billion over the past decade, he says. Part of that increase reflects the surge of currency in circulation, which has doubled to $1.6
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