05.04.2017 — FED MINUTES: JUSTIFY RATE INCREASE, CHANGE TO ITS REINVESTMENT POLICY SOON

The minutes of the FOMC’s March 15th meeting provided support for its decision to raise its Federal funds rate but importantly revealed an extensive discussion of the steps the Fed is considering to begin reducing the size of its balance sheet. The Fed’s portfolio has a massive $4.5 trillion in assets. With signs of the economy improving and inflation at the Fed’s long-run target, and with the normalization of interest rates already well underway, addressing the Fed’s balance sheet is long overdue.

Sandra Hülsmann
Telephone: +49 40 350 60-8357