The Federal Reserve has done the right thing by reducing its balance sheet and increasing interest rates to support a thriving economy, why reverse this now?

The Federal Reserve has unwound its balance sheet by 12% over the past year and reduced it to $3.81 trillion (from a peak of $4.5 trillion in 2017).

It has also increased interest rates since from 0.25% (range of 0% to 0.25%) in 2016 to 2.5% (range of 2.25% to 2.5%) now.

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U.S. Q1 2019 GDP growth estimated at 3.2%; Real disposable personal income growth slowed to 2.4%; Personal saving rate at 7%

Real gross domestic product (GDP) for the U.S. increased at an annual rate of 3.2% in the first quarter (Q1) of 2019, according to the advance estimate released by the Bureau of Economic Analysis (BEA).

US GDP upto Q1 2019 change from previous quarter

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