The Fed’s balance sheet has doubled in size to more than $8 trillion since March 2020, when the central bank resumed buying Treasuries and mortgage-backed securities, first to stabilize the market and then to provide additional support to the economy as it held the policy rate at the zero bound.
“The FOMC minutes indicate Fed wants rate hikes sooner or at a faster pace, earlier balance-sheet runoff, and desire for steeper yield curve,” said Ray Sharma-Ong, investment director for multi-asset solutions at abrdn plc in Singapore.
—With assistance from Edward Bolingbroke, Payne Lubbers, Ye Xie, Lilian Karunungan, Garfield Reynolds and Greg Ritchie.
This article was provided by Bloomberg News.