The Fed’s plan to unwind its $4 trillion balance sheet didn’t skip a beat even amid last month’s market turmoil

FILE PHOTO: Federal Reserve Chairman Jerome Powell arrives to take the oath of office at the Federal Reserve in Washington, U.S., February 5, 2018. REUTERS/Aaron P. BernsteinThomson Reuters

  • In September, the Fed announced a plan to gradually wind down its massive bond purchases made during and after the financial crisis.
  • That plan has been proceeding on schedule, despite turmoil in markets in February.

The fifth month of the QE-Unwind came to a completion with the release this afternoon of the Fed’s balance sheet for the week ending February 28. The QE-Unwind is progressing like clockwork. Even during the sell-off in early February, the QE-Unwind never missed a beat.

During QE, the Fed acquired Treasury securities and mortgage-backed securities (MBS) guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. During the QE-Unwind, the Fed is shedding those securities. According to its plan, announced last September, the Fed would reduce its holdings of Treasuries and MBS by no more than:

See the rest of the story at Business Insider

NOW WATCH: No one wants to host the Olympics anymore — will they go away?

See Also:

SEE ALSO: How Americans at each income level spend their money

Post Author: martin

Avatar
Martin is an enthusiastic programmer, a webdeveloper and a young entrepreneur. He is intereted into computers for a long time. In the age of 10 he has programmed his first website and since then he has been working on web technologies until now. He is the Founder and Editor-in-Chief of BriefNews.eu and PCHealthBoost.info Online Magazines. His colleagues appreciate him as a passionate workhorse, a fan of new technologies, an eternal optimist and a dreamer, but especially the soul of the team for whom he can do anything in the world.

Leave a Reply

Your email address will not be published.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

This site uses Akismet to reduce spam. Learn how your comment data is processed.