NEW YORK, April 6 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)