Fed exit strategy

The Federal Reserve has begun its two-day policy meeting and is all but certain to continue winding down its economic stimulus, part of its great monetary policy experiment following the financial crisis. And for the past five years, the Fed has pegged interest rates at zero and put about $4 trillion of extra cash into the banking system. So what happens when the central bank tries to bring rates and its balance sheet back to normal? Will it end badly or well?

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