The Fed: Fed to take historic leap into the unknown

Federal Reserve Board Chairwoman Janet Yellen at her previous press conference in June.

The Federal Reserve is set to take a leap into the unknown this week by beginning to run-off some of the roughly $3.7 trillion of bonds and mortgage securities it amassed during the financial crisis.

The Fed will meet on Tuesday and Wednesday and is widely expected at the end of the meeting to announce it plans to allow the taper of its massive balance sheet beginning sometime in October. Fed Chairwoman Janet Yellen will hold a press conference afterwards to explain the decision.

See:Fed to wind down bond holdings ‘relatively soon’

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