Fed plans October start for 'gigantic' balance sheet reduction

As expected the Federal Open Market Committee (FOMC) kept rates on hold at a range of 1% to 1.25%, but also announced it will begin the unwinding of the stimulus programme it began close to a decade ago on hopes the US economy will continue to "perform well". In October, the Fed will begin reducing its $4.5trn portfolio in bonds by stopping reinvesting the proceeds of maturing debt accumulated through the various QE programmes.  SocGen's Edwards: Fed will be forced into 'more pronounced' tightening than market expects It is hoped the runoff will see reductions in the tens of billio...