Buried in a rote US Treasury survey released on the eve of the latest holiday weekend was a question that all of Wall Street wants the answer to: What’s the Federal Reserve’s plan once it’s done drawing down its crisis-era bond holdings?
Fed officials, who are meeting this week, have said very little about the future of the unwind of assets — a process known as quantitative tightening that’s been ongoing since mid-2022 — or their plans for the balance sheet once the runoff has concluded.