The Federal Reserve announced it would begin selling off its $4.5 trillion debt that it accumulated since 2008 by buying up investors’ toxic mortgage and T-bonds at above market rates.
Chair Janet Yellen set October as the start of the unwinding of the central bank’s balance sheet and stuck to the predicted one rate hike left for 2017. U.S. equity markets continued to churn in one of the tightest ranges in history. The investors are reluctant to add to bets that have pushed benchmark indexes to records.
Gold fell about 1 percent to its lowest in nearly four weeks on Thursday. Before the Federal Reserve announcement, the dollar had its worst slump, battered by political drama in Washington and shifting bets on central-bank policy. Managers of $3 trillion say the carnage has gone on long enough.