Bloomberg/Craig Torres/4-6-2022
“The Federal Reserve signaled it will reduce its massive bond holdings at a maximum pace of $95 billion a month, further tightening credit across the economy as the central bank raises interest rates to cool the hottest inflation in four decades. Minutes of their March meeting released Wednesday also showed that “many” officials viewed one or more half-percentage-point rate increases could be appropriate going forward if price pressures fail to moderate.”
Federal Reserve Balance Sheet
($, March 2022)
Chart courtesy of Tradingeconomics.com
USAGOLD note: Not to be the spoiled sport, but at the rate of reduction specified, it will take almost 9.5 years to reduce the Federal Reserve’s balance sheet to zero.
