Behind Interest Rate Hikes Sits Trillions in Bonds the Fed Must Unload

Behind Interest Rate Hikes Sits Trillions in Bonds the Fed Must Unload
U.S. Federal Reserve chairman Jerome Powell speaks during a news conference in Washington on Feb. 1, 2023. Saul Loeb/AFP via Getty Images
Kevin Stocklin
Updated:
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Testifying before the Senate Banking Committee on March 7, Federal Reserve chairman Jerome Powell said he is prepared to accelerate interest rate hikes as economic growth and labor shortages continue to fuel inflation.

Meanwhile, the Fed is still sitting atop a massive $8.4 trillion portfolio of bonds it bought through economic stimulus programs. This portfolio now needs to be liquidated as the Fed shifts from stimulus to a more restrictive monetary policy to fight inflation.

Kevin Stocklin
Kevin Stocklin
Reporter
Kevin Stocklin is a contributor to The Epoch Times who covers the ESG industry, global governance, and the intersection of politics and business.
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