Fed Might Delay Rate Hikes to Narrow Down Balance Sheet

Several Fed officials have already confirmed that the central bank will be starting to cut down their initially very large-scale balance sheet during the latter part of 2017, although they refused as of yet to discuss further details regarding their plans to push through with increasing short-term interest rates next year. However, some economists are exhibiting their skepticism with regards to this particular move, saying that it is highly likely that the Fed’s measures of financial tightening might ultimately affect the Fed’s overall monetary policy and could translate to tighter economic policies within the country.