Goldman Sachs say that the FOMC Minutes released Wednesday (more here, and here ) suggest the balance sheet runoff could begin relatively quickly following the interest rate liftoff.
JP Morgan, meanwhile say:
- We think the Fed “will start ‘quantitative tightening’ this September by allowing maturing assets to run off its balance sheet.
- We expect the FOMC will phase in a $100bn-per-month cap on runoff .. double the maximum pace its balance sheet was reduced during 2017 to 2019.
Always fun getting a b/s runoff between analysts ....
