The Fed's holdings have surged five-fold since 2008, ballooning in size as the Fed bought Treasury and mortgage bonds. Fed officials, led by chair Janet Yellen, appear to have felt reasonably confident about the economy in June. A few Fed officials noted that stock prices were high relative to traditional methods of valuation. Because of the markets' performance and subdued volatility, a few Fed officials expressed concern about "a buildup of risks to financial stability." Still, the decision to reduce the Fed's holdings came across as a sign of optimism for an economic recovery embarking on its ninth year.

Source: ABC News July 05, 2017 18:03 UTC