The Fed: Fed might start balance-sheet drawdown in September, FOMC minutes hint

The Federal Reserve is taking away the punch bowl for the U.S. economy. But not right away – and only one cup at a time.

WASHINGTON (MarketWatch) — The Federal Reserve could trigger a long-awaited move to reduce its massive $4.5 trillion in debt holdings as early as September, but the central bank still appeared unsettled on the timing of its strategy to reduce the scope of its support for the U.S. economy.

The Fed said last month it would begin to whittle down its hoard of Treasury bonds and mortgage-backed securities some time this year. At a gathering of senior bank officials, “several preferred to announce the start of the process within a couple of months,” according to minutes of the June 13-14 Federal Open Market Committee meeting released Wednesday.

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