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Listen Live
Saturday’s: 9AM 1590 AM/97.9 FM KVTA
Sunday’s: 7AM K-EARTH 101 FM
It will come as no surprise if the Federal Reserve has an announcement to make when its latest policy meeting ends Wednesday: That it’s ready to begin paring its enormous $4.5 trillion portfolio containing Treasurys and mortgage bonds.
The Fed expanded its bond holdings — the major assets on its balance sheet — in the years after the financial crisis erupted in 2008. It bought the bonds to try to hold down mortgage and other loan rates and support a fragile economy. The Fed stopped buying new bonds in 2014 but kept its balance sheet high by reinvesting the proceeds of those it held as they matured.
