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Fed may start reducing bond holdings slowly

Fed watchers expect policymakers to begin the balance- sheet drawdown with monthly reductions of US$20b

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Fed aims to ensure the drawdown is a very modest, minor event, says Mr Dudley.

Washington

IF you thought the Federal Reserve's interest-rate increases have been gradual, wait until you see what it has planned for its US$4.5 trillion balance sheet.

The US central bank looks likely to begin reducing its bond holdings at a glacial pace given how uncertain

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