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Analysis: Fed's escape from crisis holdings could hit dead end

Reuters  |  NEW YORK 

By Jonathan SpicerNEW YORK (Reuters) - Not long ago the Federal Reserve expected to quietly shed nearly half of its $4.5-trillion portfolio by around 2022, leaving little trace of the extraordinary steps it took to face down the financial crisis. But an unexpected market kink could force the Fed to scrap the plan two or three years early and permanently leave it holding $1 trillion more than it wanted. The U.S. central bank is making adjustments on the fly and keeping its options open. "I don't think that's problematic in any way" to halt the process "somewhat earlier," William Dudley, the ...

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First Published: Thu, July 12 2018. 23:02 IST