Fed to Reduce Bond Purchases

  • As anticipated by market participants, the Fed announced it will begin to offload the $4.2 trillion of U.S. Treasuries and mortgage backed securities acquired since 2008
  • The $4.2 trillion balance sheet came in part due to multiple quantitative easing programs in order to boost the economy following the 2008 recession
  • The Fed also announced that due to low unemployment, growth in business investments, and economic expansion that it may raise interest rates for a third time in 2017