Fed's March minutes imply monthly bond holding reduction of $95 trillion
The central bank’s officials “generally agreed” to roll off at most $60 billion in Treasurys and $35 billion in mortgage-backed securities (MBS), phased in over three months. The process is likely to start in May.
By Yashasvini Razdan
Published - Apr 06, 2022, 11:37 PM ET
Last Updated - Feb 22, 2024, 09:56 AM EST
• The minutes suggested a more aggressive approach towards policy tightening
Minutes of the Federal Reserve’s March meeting showed that the officials have been contemplating reducing bond holdings by $95 trillion per month.
The minutes suggested that the Fed members were leaning towards more aggressive moves with respect to interest rate hikes and balance sheet reduction.
The central bank’s officials “generally agreed” to roll off at most $60 billion in Treasurys and $35 billion in mortgage-backed securities (MBS), phased in over three months. The process is likely to start in May.
