Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Fed Lays Out Plan to S L O W L Y Reduce Balance Sheet: How Long Will It Take?

Courtesy of Mish.

In addition to hiking today, the Fed announced its Plan to Shrink Asset Holdings Beginning This Year.

Balance sheet reduction hasn’t started yet, nor did the Fed even say when it would start. Since the Fed will announce the start date in advance, its eye would appear to be focused on December.

Once balance sheet reduction starts, the cap will be $10 billion a month rising to $50 billion a month, on a schedule not posted.

How to Build Up a Balance Sheet

The initial $10 billion cap on reductions is $6 billion in Treasury securities and $4 billion in mortgage bonds.

The maximum reduction rises to $50 billion a month, $30 billion a month for Treasurys and $20 billion a month for mortgage securities.

How Long Will It Take?

At $10 billion a month, $120 billion a year, it would take the Fed 29 years to reduce its balance sheet to $1.0 trillion from $4.5 trillion.


Continue reading here…


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!