In what would be a historic day the Fed is expected to sell the bonds and mortgage securities they totaled during the financial crisis. They accumulated about 3.7 trillion in these assets over that time. In this attempted plan they wouldn't be under the 3 trillion mark until around 2019. This is a process that will take some time to have any effects and the Fed is happy about that because they want to keep the financial markets calm. This could have great effects on monetary policy decisions in the future. I am interested to see what decision the Fed will come too in their meetings on Tuesday and Wednesday and the economic and financial market effects that will ensue.
http://www.marketwatch.com/story/fed-to-take-historic-leap-into-the-unknown-2017-09-14
While there is an apprehensiveness coming from the Fed, this is something they have to do. The US economy is strong enough to where it can survive this selling off of a huge amount of assets. It will also be interesting to see what monetary policy decisions will be made. Will interest rates increase/decrease? How about the inflation effect? These will all be interesting to see when the time comes.
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