US Fed could stop reinvestment policy this year

US Fed could stop reinvestment policy this year

The Fed could start winding down its massive balance sheet a bit later in 2017 in a shift, which would make it less necessary to lift the official funds rate, as a US major banker revealed on Monday.

In an interview to reporters in Australia, St. Louis Federal Reserve President James Bullard told that views differed within the major US institution on ending its balance sheet reinvestment policy and it would require some time to agree on, though he felt it could start later in 2017.

Bullard stressed that the major bank wouldn’t be selling assets from its $4.5 trillion balance sheet. It also doesn’t intend to replace them as they’re maturing

It could be well accommodated by financial markets and also would apply limited upward pressure on Treasury yields.

Financial experts surveyed by Reuters and by the Fed itself had mostly expected the process to start in 2018.

Bullard added he personally favored only one more interest rate lift in 2017 and emphasized that ending bond reinvestment could be as a replacement for rate lifts. 

Similar

Popular

Japan real wages surge is slowest in almost two years

Japan's March real wages went down at the fastest pace in nearly two years, weighed by minor nominal pay lifts as well as a moderate ascend in consumer prices, thus posing a setback for Prime Minister Shinzo Abe's tries to revitalize the Japanese…

Crude holds revenues on API estimates

On Wednesday, crude held revenues in Asia because industry estimates revealed a much sharper draw in American crude inventories expected, although higher than seen gasoline stocks affected market sentiment…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera