WSJ – Markets Await Fed Moves to Trim Balance Sheet

Mostly modest effects on global markets are expected.

June 14, 2017

‘With the Fed on track to announce a strategy for shrinking its big bondholdings, attention is shifting from how it will work to how it will affect financial markets: Will it be a snooze or a storm?

Fed officials are hoping for the former, seeking to avoid a replay of the 2013 “taper tantrum” that occurred when the prospect of declining central-bank bond purchases triggered global market convulsions, including big capital outflows and currency drops in emerging markets.’

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