US Treasury Secretary Says Fed is Doing The Right Thing

June 20, 2017 Share Print 0

Treasury Secretary Steven Mnuchin told CNBC on Tuesday that Janet Yellen’s Federal Reserve is doing the right thing by winding down its balance sheet.

In an appearance on “Squawk Box,” Mnuchin said he spoke with the Fed chief on what policymakers are trying to do.

“We think it’s the right thing for them to get out of their large portfolio. It was something that they did in a unique period of time and obviously, it has to be reversed,” he said.

The Treasury secretary spoke nearly a week after the Fed provided details on how it will unwind its $4.5 trillion balance sheet, or portfolio of bonds that includes Treasurys, mortgage-backed securities and government agency debt.

In a post-meeting statement on Wednesday, the Fed said it “expects to begin implementing a balance sheet normalization process this year, provided the economy evolves broadly as anticipated.”

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.