Explaining The Federal Reserve's Balance Sheet Policy | What Does It Mean?

David Page, Senior Economist at AXA Investment Managers helps to decipher the Federal Reserve's latest moves in terms of its balance sheet policy. There have been two important announcements from The Fed in recent meetings: first, it announced that it would maintain a long term monetary operation framework with abundant reserves (a system that was put in place after the financial crisis to allow for quantitative easing). In March it then announced that it would slow the process of quantitative tightening from May with a view to freezing the balance sheet from September.

Find out the implications this will have on excess reserves and monetary policy, and the questions that still have to be answered following this announcement. For example, what effect has quantitative tightening been having on market rates?

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