Quantitative easing: a never-ending story?
The Fed is cutting the size of its balance sheet, but is unlikely to reduce it to pre-crisis levels
The US Federal Reserve has become the second major central bank in recent history to start reducing the size of its balance sheet after embarking on large-scale asset purchase programmes. Since 2017 – a decade after it first started buying up agency mortgage-backed securities and Treasuries – the Fed has shed $600 billion of assets from its balance sheet.
Its move to reverse what is more commonly called quantitative easing (QE) is being closely watched by other central banks. The European
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