Fed wants end to crisis-era measures to be as dull as possible
It wants to trim its US$4.5 trillion assets to US$3 trillion but without setting off any wild swings in markets
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THE US Federal Reserve is set on Wednesday to announce the start of a plan to trim its US$4.5-trillion portfolio of assets, much of it amassed in response to the 2007-2009 financial collapse, marking another milestone in bringing to an end the crisis-era measures.
If Fed Chair Janet Yellen gets her way, financial markets that had swung wildly with past shifts to the policy will barely shrug when the asset reduction begins, probably in October. The plan is for the Fed to stop buying bonds so gradually that it will take years for its holdings to shrink to US$3 trillion, around where some policymakers and economists estimate it will settle.
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