Even as the central bank amassed trillions of dollars of debt to prop up the economy following the financial crisis, it didn’t hedge its holdings or fret about gains and losses that might keep ordinary investors up at night. This extreme buy-and-hold stance has had an incredible calming effect on the bond market.
Ed. Note: This article first appeared in CNBC It’s frequently said that good things come to those who wait — but a bloated $4.5 trillion balance sheet might be a striking exception to that rule. With the Fed facing a Herculean conundrum in unwinding its crisis-era monetary policy — and a likely leadership transition on the […]