NEW YORK: The Federal Reserve (Fed) on Wednesday said it will start culling assets from its US$9 trillion (RM39 trillion) balance sheet in June and will do so at nearly twice the pace it did in its previous “quantitative tightening (QT)” exercise, as it confronts inflation running at a four-decade high.
The central bank’s stash of assets has roughly doubled in size during the coronavirus pandemic as it used purchases of Treasuries and mortgage-backed securities to smooth market functioning and augment the effects of its interest rates cuts.
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