The Fed can start reducing assets on the balance sheet this year

The Federal Reserve may begin to cut its balance from the current $4.5 trillion this year, sooner than many economists expect, the head of the Federal Reserve Bank of New York, William Dudley, said while giving the most comprehensive answer to the question, which bothers financial markets.
Most economists, interviewed by Reuters and the Fed, expect that the US central bank will begin to reduce its assets on its balance sheet next year, which would cause lower bond prices. Dudley's comments pushed the dollar's exchange rate on Friday's trading to a decline to the session low against the Japanese yen.
The Fed has accumulated a record volume of mortgage securities and US Treasury bonds after the financial crisis of 2007-2009 during three rounds of "quantitative easing", designed to stimulate investment, hiring workers and economic growth. The regulator does not buy new bonds, but replenishes its portfolio.