Welcome to our website for Financial Advisors. To visit our site for Individual Investors, please use the drop-down menu next to Financial Professionals to change your selection.

Unwinding the Fed’s balance sheet

Our BlogVideos Jan 25, 2018
Edward Al-Hussainy, Senior Interest Rate and Currency Analyst

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.

Download transcript

Download this article as a PDF

Edward Al-Hussainy

Edward Al-Hussainy

Senior Interest Rate and Currency Analyst