The gradual wind down of the Federal Reserve’s balance sheet will have far-reaching effects throughout the banking system. For the most part, major banks stand to benefit. The Fed confirmed on Wednesday that it will begin shrinking its portfolio in October, initially by allowing $6 billion of Treasurys and $4 billion of mortgage-backed securities to mature every month without reinvesting the principal. This should push up...

Source: Wall Street Journal September 20, 2017 19:09 UTC