On Wednesday, the U.S. Federal Reserve announced it would be winding down its corporate bond purchases and selling part of its portfolio. The central bank plans to start with exchange-traded funds and then move on to bonds as the Fed insists “sales will be gradual and orderly.”
Federal Reserve Starts to Unwind QE
All eyes have been on the American central bank in recent times as the Federal Reserve has started tapering back quantitative easing (QE) tactics. It’s fascinating to onlookers because an estimated 24%-30% of all the USD ever created was added to the M1 monetary system by the central bank in 2020 and 2021. Moreover, the Fed told the press at the recent Federal Open Market Committee (FOMC) meetings that it would take some time for tapering discussions to begin.
Fed Chair Jerome Powell hasn’t discussed the recent slow down toward QE since he said the Fed wasn’t even ready to have a conversation concerning tapering back