01:24 GMT24 June 2021
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    The US Federal Reserve looks to start reinvesting in some $4.5 trillion worth of bonds later in 2017, Chair Janet Yellen said in prepared remarks for Congress on Wednesday.

    WASHINGTON (Sputnik) — The chair said the Federal Open Market Committee (FOMC) will reduce the amount of bonds gradually.

    "The Committee currently expects that, provided the economy evolves broadly as anticipated, it will likely begin to implement the program this year," Yellen stated.

    According to FOMC March meeting minutes, many of the members think that reducing the balance sheet size should be "passive" and "predictable."

    The Federal Reserve accumulated its bond portfolio, or the balance sheet, in the 2008 financial crisis to be able to stimulate the US economy.

    Yellen noted that despite unwinding, the bank’s balance sheet would still remain larger that it was before 2008.


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    bonds, Federal Reserve System, Janet Yellen, US
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