Yellen: Fed's Bond Holdings To Drop Only Gradually - Presented by: The Aol. On Network

Federal Reserve Chair Janet Yellen says the Fed's bond holdings will likely remain at high levels for up to eight years after it starts raising short-term interest rates. Yellen says the Fed's investment portfolio, now at a record $4.3 trillion, will decline only gradually. She says it could take five to eight years for the portfolio to return to its level of 2008, when the Fed began aggressively buying bonds.



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