Quote:
Originally Posted by tabs
The best course of action would be for the FED to just let them come to maturity all the while collecting what interest there is. They could then reduce the money supply if and when appropriate with the proceeds. That way the markets wouldn't have to absorb the paper causing an undue burden.
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It's been months back when I read it, but I thought that's exactly how they were gonna reduce their balance sheet....by not reinvesting a given portion as they matured each month. Am I missing something? Seems reasonble to me...I dunno????