Money-market conditions were very much on the minds of Federal Reserve officials at their meeting last month as they began debating how quickly to withdraw monetary policy stimulus for the U.S. economy.
According to minutes of the mid-December gathering, officials believe they can likely draw down the size of the Fed’s $8.8 trillion balance sheet sooner and more quickly after starting to raise interest rates than they did between 2017 and 2019, the last time the central bank worked to reduce the size of its holdings.
Officials…
