Monday Morning Outlook~WSJ Leak: Fed May Shrink Balance Sheet

Fed Chair Janet Yellen apparently allowed a leak to the Wall Street Journal, published on March 31st, suggesting the Fed understands the problem. The Fed is taking off the table the idea there might be four rate hikes this year, but is putting on the table the idea that it will eventually pause on rate hikes and start reducing the size of its balance sheet as the normalization process continues.