The Federal Reserve’s $2.5trn question

Can a central bank make $2.5trn of cash vanish without anyone much noticing? That is the improbable, even audacious, mission the Federal Reserve has begun, trying to shrink its vast balance-sheet while minimising disturbances to the economy. The process—known as “quantitative tightening” (qt)—got under way in mid-2022. The Fed has already shed nearly $500bn in […]