Interesting article from weekend Bloomberg about Fed exit plans (can we call them QExit?). Some quotes:
The bigger the balance sheet, “the riskier the exit becomes,” Richmond Fed President Jeffrey Lacker
… a too-rapid sale of assets risks disrupting the $5.2 trillion market for agency mortgage debt.
“They have to find ways of unwinding the balance sheet without dumping all of it in the marketplace,” said Memani, (director of fixed income at OppenheimerFunds Inc)
“The more they add to the balance sheet, the longer it will take to normalize,” said Hanson (a senior U.S. economist at Bank of America Corp.)
Fed Exit Plan May Be Redrawn as Assets Near $3 Trillion
(h/t In The Bernank We Trust in the comments)
