May 25, 2017 / 3:59 PM / 4 months ago

J.P. Morgan economist sees modest roll-off caps for Fed's balance sheet

NEW YORK (Reuters) - The U.S. Federal Reserve would set modest initial limits on the amount of Treasuries and mortgage-backed securities to run off its balance sheet later this year, as a part of its effort to remove monetary accommodation, according to a J.P. Morgan economist on Thursday.

The U.S. central bank may start its program to shrink its $4.5 trillion balance sheet perhaps as early as September, with a roll-off cap on MBS at $4 billion and one on Treasuries at $8 billion, J.P. Morgan economist Michael Feroli wrote in a research note.

Reporting by Richard Leong; Editing by Chizu Nomiyama

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below