How will the end of easy money pan out?

Minutes from the Fed meeting shows that it plans to shrink the central bank's balance sheet faster than expected to tackle inflation. Alex Rankine explains what is going on.

Fed
The Fed is starting to shrink its balance sheet.
(Image credit: © Getty)

“The world’s central bankers… are starting to see sense,” says Hamish McRae in The Mail on Sunday.

Minutes from the March meeting of America’s Federal Reserve show that policymakers plan to shrink the Fed’s $9trn balance sheet faster than anticipated in response to soaring inflation. The balance sheet is made up of assets, principally US government bonds and mortgage-backed securities, which the Fed has bought during multiple rounds of quantitative easing (QE).

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.