The Federal Reserve (Fed), America's central bank, is carefully reducing its money supply. Think of it like slowly taking toys out of a toy box to make sure everyone still has enough to play with. They're doing this while the government sorts out its budget.
- The Fed is reducing its assets (like selling some of its bonds) to control prices.
- They are watching the market closely to avoid causing problems.
- They might temporarily add money back if needed.
- They don't plan to sell all their bonds right away.
Fact | Details |
---|---|
Fed's Assets | Reduced from $9 trillion to $6.8 trillion |
Goal | Careful reduction of money supply |
Method | Selling bonds, watching market impact |