WASHINGTON—Federal Reserve officials began a formal debate at its latest policy meeting around the task of determining the composition of Treasury securities the central bank would hold after it ends the runoff of its asset portfolio. The debate is focused on how to manage a mix of Treasury bills, notes and bonds to give the central bank the most firepower possible to stimulate the economy in another economic downturn. This composition will matter greatly to markets, with implications for the economy and monetary policy because...

Source: Wall Street Journal May 22, 2019 18:59 UTC