As the Federal Reserve executes its plan to unwind its massive bond holdings accumulated through quantitative easing, it will be challenged not to disrupt markets.

In an effort to battle the financial crisis, the nation’s central bank began making massive purchases of Treasury bonds and agency mortgage-backed securities.

By March 2010, it had completed the acquisition of $1.75 trillion in securities. Three-and-a-half years later, its overall assets had ascended to $4.5 trillion.

Source: Mortgage Daily