The Fed will unwind the balance sheet once they see continued employment and stablization in the economy and also from Europe, Europe is probably the Fed's biggest concern right now...and QE has lowered interest rates and kept them low, it's call monetary policy, that's what they do.
The Fed isn't going to lose money by unwinding the balance sheet, I've never heard any Wall St. analyst or economist say that the Fed is going to lose money by unwinding their balance sheet, they just have to do it slowly and carefully
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