by kublikhan » Tue 06 Jun 2017, 17:14:55
That article is 5 years old short. Why don't you try looking at what the FED is saying today:
$this->bbcode_second_pass_quote('', 'F')ederal Reserve officials said the shedding of the $4.5 trillion in bonds the central bank is holding on its balance sheet will begin this year. Unwinding the balance sheet is significant both because of its sheer size and the impact it could have on markets.
Federal Reserve wants to start unwinding the $4.5 trillion in bonds on its balance sheet this year$this->bbcode_second_pass_quote('', 'T')he Federal Reserve is actively considering a profound change in US monetary policy, in effect the reversal of quantitative easing (QE). In its March meeting, the FOMC discussed its strategy for the future run down of its balance sheet, and said that further debate would take place in upcoming meetings.
The FOMC has already concluded that “a change in the Committee’s reinvestment policy would likely be appropriate later this year.” Investors are therefore beginning to focus on the possible consequences of the reversal of QE on interest rates and the shape of the yield curve.
The FOMC has already outlined some of the principles that will guide the shrinkage of its balance sheet. The central bank’s portfolio of treasuries and mortgage backed securities will almost certainly be run down in a gradual and predictable manner, allowing bonds to run off as they mature, instead of reinvesting the proceeds in more bonds. There will be no direct sales of bonds into the open market.
Some of the effects of balance sheet normalisation may already be in the market. According to to New York Fed’s Primary Dealer Survey in March, market participants already expect the run down to start in mid 2018, when the Fed funds rate has reached 1.63 per cent.