The FOMC minutes were clear that officials are contemplating beginning address the balance sheet, which is another sign of confidence in the normalization process. However, beyond that very little else is clear. There does not appear to be much agreement yet on the pace or the scope of the adjustment. There are roughly $425 bln of US Treasuries that are maturing next year. The Fed also own Mortgage Backed Securities (MBS). Over the past 12 months, the Fed has reinvestment about $350 bln of maturing MBS securities. Officials have indicated a preference to return to an all-Treasury balance sheet in the long-term, but ... (full story)