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In sign of U.S. economy’s strength, Fed to start reducing $4.5 trillion balance sheet
The Washington Post: The Federal Reserve said Wednesday that the U.S. economy is strong enough for the central bank to begin reducing its $4.5 trillion balance sheet in October, gradually unwinding a massive stimulus program started after the economy entered a severe recession nearly a decade ago.
The Fed will start reducing its holdings by $10 billion in October and raising that amount gradually in the months to come.
“The basic message here is U.S. economic performance has been good,” said Federal Reserve Board Chair Janet L. Yellen on Wednesday.
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