Since the financial markets collapsed in 2008, the Federal Reserve has taken unprecedented steps to keep the U.S. economy going. Most recently, it attempted to respond to the elevated unemployment rate with a second round of quantitative easing. That is set to end in June, but the Fed is already taking steps wean the market off its support when the time is right. Caroline Salas from Bloomberg explains what the Fed's doing to prep its exit strategy. Here's an excerpt:
In the week after the Federal Open Market Committee's Jan. 25-26 meeting, policy makers issued three announcements about expanding the number of counterparties for transactions that will help drain the record amount of cash added to the financial system. Brian Sack, the New York Fed's markets-group head, added more details about the preparations in a Feb. 9 speech, and New York Fed President William Dudley reiterated last week that officials have the ability and will to withdraw their stimulus when necessary.
Read the full story at Bloomberg.