The beginning of the Federal Reserve’s unwinding of its balance sheet is starting to look further off and more drawn out than some expect, according to Wrightson ICAP. For the past year and a half, the Fed has been letting as much as $60 billion in Treasuries and as much as $35 billion in agency debt holdings mature each month. But, a debate has been simmering over whether the central bank is misjudging how much it can tighten without causing dislocations in places like the repo market, an essential part of the plumbing of the financial system. A handful of central bank policymakers that have weighed in don’t see ... (full story)