United States: Ceasing purchases is the plan

Activity rebounded since the middle of 2016, while the labour market is close to full employment. If inflation remains subdue, in all likelihood it will move closer to the Fed's target in the medium term.
The normalisation of the US monetary policy can go on. Its pace will depend on the fiscal outlook, but the path followed has been decided a long time ago.
The Fed will stop rolling over maturing debt in order to downsize its balance sheet, not only at first, as it intends to use net sells at last resort only.

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BNP Paribas Economic Research Department is a worldwide function, part of Corporate and Investment Banking, at the service of both the Bank and its customers.

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