Our BlogVideos Jan 25, 2018
The Fed is set to unwind $4.5 trillion in assets on its balance sheet. What does that mean for investors?
Most of the Fed’s $4.5 trillion dollars of assets on its balance sheet are in mortgage-backed securities and Treasuries. But as it begins unwinding, it’s not selling these assets — it’s just no longer investing in them. In this video, Ed Al-Hussainy discusses the slow pace at which the Fed is displacing assets off the balance sheet and the consequences it will have on interest rates.