Normalizing The Fed’s Balance Sheet

Published on18 SEP 2017

A decade after the financial crisis, the Fed appears set to begin unwinding some of the asset purchases added to its balance sheet in its efforts to stimulate the economy. Allison Nathan of Goldman Sachs Research discusses what this balance sheet “normalization” could mean for markets and the signposts to watch that could signal a more disruptive outcome.

We estimate that runoff should increase 10-year bond yields by about 20 basis points this year, and lead to a further gradual rise through 2021.

- Allison Nathan

Allison Nathan
Senior Strategist, Global Investment Research, Goldman Sachs