Informative post on the FED
Old, dated 12/9/17
[THE FED DOES WHAT IT SAYS IT’S GONG TO DO, AS USUAL. ]
“Balance sheet normalization”
The Fed’s announced plan is to shrink the balance sheet by $10 billion a month in October, November, and December, then accelerate the pace every three months. By October 2018, the Fed would reduce its holdings by up to $50 billion a month (= $600 billion a year) and continue at that rate until it deems the level of its holdings “normal” – the new normal.
As part of the $10-billion-a-month unwind from October through December, the Fed is supposed to unload [“roll off,” or not reinvest] $6 billion in Treasury securities a month plus $4 billion in mortgage-backed securities (MBS) a month.
[The only unknown is the action of the new regime at the FED next year]
http://www.zerohedge.com/news/2017-12-0 ... hree-years