Fed Faces Crucial Decision on Mix of Treasurys in Its Portfolio

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Fed Faces Crucial Decision on Mix of Treasurys in Its Portfolio
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Along with when to stop shrinking its asset portfolio, the Fed faces another decision—what mix of Treasurys it holds, with implications for the economy

Markets have cheered the Federal Reserve’s imminent announcement that it will stop shrinking its asset portfolio later this year, but determining that date is just one challenge facing central-bank officials.

Now, they are turning to the arguably more sensitive task of determining the composition of the Treasury securities the central bank will hold.

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