Fed's QT Bond-Dumping Campaign Ramping-Up To Cruising Speed

The Fed’s QE Unwind – “balance sheet normalization,” as it calls this – is accelerating toward cruising speed. The first 12 months of the QE unwind, which started in October 2017, are the ramp-up period – just like there was the “Taper” during the final 12 months of QE. The plan calls for shedding up to $420 billion in securities in 2018 and up to $600 billion a year in each of the following years until the balance sheet is sufficiently “normalized” – or until something big breaks.

 

https://wolfstreet.com/2018/08/03/fed-accelerates-qe-unwind-balance-sheet-normalization/

 

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