Fed’s Balance Sheet Continues to Shrink

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In a week when three central banks are due to announce their monetary policy decisions (Bank of Japan, Bank of Canada, and the European Central Bank), the driver for the currency market may come from an unexpected source – the Federal Reserve of the United States.
Last week the Fed’s balance sheet shrank for the fourth consecutive week, by almost $90 billion – the most since 2009. The total size of the balance sheet dropped…

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