By Sarah Foster
From Bankrate.com
The Federal Reserve made headlines on June 15 when it raised interest rates by the single biggest hike since 1994, but another lesser-known decision at May meeting—albeit a substantially more complex one—could have an even greater influence over how much you pay to borrow money.
The Fed said in May that it’s going to soon start shrinking its massive near $9 trillion bond portfolio. The decision is almost seven months in the making, but officials are going to ease their way into it. Starting June 1, they let $47.5 billion worth of assets roll off their books, more formally known as the balance sheet. Then, that number will increase to $95 billion by September….