J.P. Morgan economist sees modest roll-off caps for Fed's balance sheet
NEW YORK (Reuters) - The U.S. Federal Reserve would set modest initial limits on the amount of Treasuries and mortgage-backed securities to run off its balance sheet later this year, as a part of its effort to remove monetary accommodation, according to a J.P. Morgan economist on Thursday.
The U.S. central bank may start its program to shrink its $4.5 trillion balance sheet perhaps as early as September, with a roll-off cap on MBS at $4 billion and one on Treasuries at $8 billion, J.P. Morgan economist Michael Feroli wrote in a research note.
(Reporting by Richard Leong; Editing by Chizu Nomiyama)
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