Fed Considers Careful Step Back from Quantitative Tightening The Federal Reserve is contemplating slowing down the process of “quantitative tightening” (QT), which involves reducing its $1.5 trillion balance sheet accumulated from buying Treasury and mortgage bonds during the pandemic. This method, aimed at tightening financial conditions to combat inflation, allows the bonds to mature without renewal, indirectly raising long-term interest rates as the market absorbs the supply. As inflation begins to subside, the central bank faces the challenge of decelerating the balance sheet reduction without causing market disruptions similar to those experienced in the previous decade when it last attempted to unwind its holdings. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Euro Zone Beats Recession Odds, But Economic Challenges Loom READ MORE Fed Survey Reveals Growing Pessimism Among US Companies READ MORE The Commodities Feed: China Buys More Gold in February READ MORE Gold Rebounds on U.S. Economic Uncertainty and Softening Job Market READ MORE Forbes: What To Expect From April’s CPI Report READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment