Federal Reserve officials, concerned that selling bonds fromtheir $4.3 trillion portfolio could crush the U.S. recovery, arepreparing to keep their balance sheet close to record levels foryears.
Central bankers are stepping back from a three-year-old strategyfor an exit from the unprecedented easing they deployed to battlethe worst recession since the Great Depression. Minutes of theirlast meeting in April made no mention of asset sales.
Officials worry that such sales would spark an abrupt increasein long-term interest rates, making it more expensive for consumersto buy goods on credit and companies to invest, according to JamesBullard, president of the Federal Reserve Bank of St. Louis.
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