shrink your balance sheet and roll off the assets that you own

jasminasul

jasminasul

Senior Member
Spanish Andalusia
Quisiera saber si hoja de balance es el término adecuado utilizado por los bancos centrales. Creo que está diciendo que, para que haya más liquidez en la economía, la Fed imprime dinero para comprar bonos del Tesoro. Cuando estos vencen, ya no los vuelven a comprar (¿los liquidan?), por lo que hay menos dinero en circulación. Puede que no lo haya explicado todo bien porque no sé nada de economía, pero lo que más me interesa es hoja de balance y liquidar.

There's also another thing that the Fed has been doing, and I don't quite understand it, but I guess it's called normalization. So when you sort of shrink your balance sheet and roll off the assets that you own. How does that affect the housing market?

With QT, the Fed stopped reinvesting up to $30 billion in maturing Treasuries and $17.5 billion in maturing MBS every month, passively shrinking its assets as those securities "roll off" without being replaced. The Fed Is Shrinking Its Balance Sheet. What Does That Mean?
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The papers, from researchers at the Atlanta and Kansas City Fed regional banks, are similar to other efforts to estimate how markets may be influenced as the Fed allows the trillions of dollars of securities it bought to support the economy during the coronavirus pandemic to mature and "roll off" its balance sheet. Fed staff say balance sheet runoff could strain Treasury market
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Balance sheet normalization is a form of monetary tightening and will be achieved by letting maturing bonds “rolloff” the Fed’s balance sheet without being reinvested. As bonds mature, the money the Fed receives as principal payments is removed from the economy, shrinking the money supply. "Balance sheet normalization is a form of monetary tightening and will be achieved by letting maturing bonds" - Search
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