This article was published by The McAlvany Intelligence Advisor on Wednesday, September 20, 2017:
Investors and Wall Street gurus, seers, and prognosticators paid attention on Wednesday to the emanations from the Federal Reserve board meeting, hoping to glean more of the details about the “great unwinding” of the Fed’s enormously bloated balance sheet. In June, Fed Chair Janet Yellen suggested that the time was drawing near to begin reducing the Fed’s balance sheet and there were at least two ways to start: letting maturing bonds “roll off” instead of reinvesting the proceeds in new issues, and liquidating, ever so slowly, some U.S. treasuries, starting at $10 billion a month in October. That liquidation would increase on a quarterly basis until it topped out at $50 billion a month.
The goal, it was suggested, was to