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Portfolio could drop to 'normal' level earlier -Fed projection
April 6, 2017 / 3:01 PM / 6 months ago

Portfolio could drop to 'normal' level earlier -Fed projection

NEW YORK, April 6 (Reuters) - The Federal Reserve’s bond holdings could drop to about $2.8 trillion by the end of 2021, the New York Fed said on Thursday in a projection that saw the portfolio reach a “normalized” state a bit earlier and with some $600 billion more assets than in a year-ago estimate.

The U.S. central bank currently has some $4.5 trillion in Treasury and mortgage bonds after three rounds of stimulative “quantitative easing” meant to boost investment and hiring in the wake of the financial crisis. The annual projection is based on published Fed and Wall Street forecasts of rates. (Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)

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