Moody's: Expect passive Fed balance sheet unwinding strategy to facilitate smooth normalization

Reuters is reporting key takeaways from a recent Moody's report with the following quotes:

• Gradual increase in pace of runoffs means Fed will remain a net buyer of Treasuries in 1st 3-4 quarters
• Expect passive Fed balance sheet unwinding strategy to facilitate smooth normalization
• Given healthy econ. outlook, believe Fed b/sheet unwinding is possible without compromising financial, economic stability