The Business Insider submits:
The Fed is planning to detail its "exit plan" this week, the WSJ says. This exit plan is the means by which the Fed will gradually reverse the tremendous stimulus it is still pumping into the economy and financial system.
As we’ve noted often over the past year, the Fed is in a bind. During the financial crisis, it bought hundreds of billions of dollars of real-estate loans and securities from banks to reduce mortgage rates and ease the pressure on bank balance sheets. This, in turn, pumped hundreds of billions of new dollars into the economy, which has helped the banks–and bankers–to make a killing over the past year. The question–the bind–is how the Fed can reverse this stimulus without killing the economy.