September 21, 2017

FROM STRENGTH TO STRENGTH:

In Sign of Strength, Central Bank to Start Reducing Balance Sheet (Heather Long, 9/21/17, The Washington Post)

The Federal Reserve said on Wednesday that the U.S. economy is strong enough for the central bank to begin reducing its $4.5 trillion balance sheet in October, gradually unwinding a massive stimulus program started after the economy entered a severe recession nearly a decade ago.

The Fed will scale back its holdings by $10 billion in October and raise that amount gradually in the months to come. After the 2008 financial crisis and ensuing recession, the Fed took the unprecedented step of beefing up its holdings of government bonds and mortgage-related securities from $900 billion to $4.5 trillion in an effort to turn the economy around.

The U.S. economy keeps getting better, according to the central bank.

You really can't overstate the job US institutions did in the face of the credit crunch, nor how fortunate we were that W, Ben Bernanke and the UR were in place that October.

Posted by at September 21, 2017 6:54 AM

  

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