Home / World / Some Fed officials want to start reducing assets 'within a couple of months,' minutes show – Los Angeles Times

Some Fed officials want to start reducing assets 'within a couple of months,' minutes show – Los Angeles Times

Several Federal Reserve officials wanted to start reducing the trillions of dollars of assets held by the central bank “within a couple of months” to accelerate the return to a more normal monetary policy after years of battling the Great Recession, according to an account released Wednesday of their most recent meeting.

But other members of the policymaking Federal Open Market Committee advocated for waiting until later this year to start slowly scaling back the Fed’s $4.5-trillion balance sheet to allow more time to assess the state of the economy, the minutes of the June 13-14 meeting said.

After that meeting, the Fed announced it planned to start reducing the balance sheet sometime this year but provided no timetable.

The amount of assets on the Fed’s balance sheet more than quadrupled to $4.5 trillion since 2008 as the central bank bought Treasury bonds and mortgage-backed securities to try to stimulate the economy.

Source: world

About Tom Mark

Leave a Reply

Your email address will not be published. Required fields are marked *

*