Earlier today, Fed Chair Janet Yellen announced plans to begin the de-leveraging of their balance sheet. I call this move Quantitative Tightening because, theoretically, as they let their bonds mature and do not re-invest the proceeds, this should reduce the amount of demand for such bonds and the price should fall. This should, therefore, raise the amount of interest these bonds will pay. And this should tighten monetary conditions in the economy.
Chair Yellen said this unwinding of the Fed's balance sheet will begin in October.