Fed Plans to Shrink Balance Sheet by $95 Billion a Month, Employ 50-Basis-Point Hikes to Cool Inflation

Fed Plans to Shrink Balance Sheet by $95 Billion a Month, Employ 50-Basis-Point Hikes to Cool Inflation
The Federal Reserve headquarters in Washington on Sept. 16, 2015. Kevin Lamarque/Reuters
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The Federal Reserve plans to shrink its balance sheet by $95 billion per month, minutes from the Federal Open Market Committee’s (FOMC) March policy meeting revealed (pdf).

Minutes released on April 6 show that committee members “generally agreed” on a cap of $60 billion in Treasury securities and $35 billion in mortgage-backed securities that would be cut from the balance sheet. The central bank plans to phase that in over three months.

Andrew Moran
Andrew Moran
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Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of "The War on Cash."
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