Fed says it will start reducing the balance sheet ‘relatively soon’

• July 26, 2017
• realestatelife
• Business & Markets, Real Estate Finance

The Federal Reserve took a step toward reducing its $4.5 trillion balance sheet, as the Federal Open Market Committee statement said its previously announced drawdown program would begin “relatively soon” instead of simply “this year.” In a unanimous decision, the Fed as expected held its targeted federal funds rate range between 1% and 1.25%. The Fed made a few minor changes in its statement, notably changing its description of inflation as “running below 2%” from the June statement that read “running somewhat below 2%.”