The Fed's bilateral balance, with Treasury and mortgage-backed bonds of $ 700 billion in 2008, reached a huge $ 4.5 trillion in about 10 years. For the time being, he was trying to keep the size of the bald eagle in balance by reloading the papers filled by the penny that the Fed had held. However, after 10 years of financial crisis, the Fed is laying out a very detailed road map to narrow down the blind.

The Fed's downsizing strategy is to refinance the two types of bonds, treasury bills and mortgage-backed treasury papers. The collapse in treasury bills starts at three-month intervals starting at $ 6 billion; With $ 6 billion worth of slices to the top of $ 30 billion. Then the reduction will be done at maximum level.

The same thing will start with $ 4 billion on mortgage-based accounts. It will be upgraded every 3 months with slices consisting of 4 billion. As a result, it will be up to 20 billion dollars. It is not yet clear when it will be started and where it will be finished. However, the vast majority of American economists point to December.

Greg Robb, one of MarketWatch's editors, said the Fed will start to shrink bilge sums to $ 10 billion per month in the first place; then he figured out that he was planning to spend a little over 50 billion dollars to slowly collapse. As a result of the implementation of this plan, there will be a contraction of 300 billion dollars in the first 12 months and 600 billion dollars in the following year.

It is said that the contraction of the balance sheet will start as early as July. I hope they really do it. If this reduction is made, the desired result will be obtained.

I hope you will see the comment. I could not post the comment early due to the bandwidth problem. @zer0hedge