Analysis-Fed faces balance sheet dilemma as U.S. economy slows

With the recent slowdown in inflation, the Federal Reserve is faced with a conundrum ahead of a plan next month to double the rate at which it is shrinking its massive $8.9 trillion balance sheet. The move to accelerate quantitative tightening (QT), as it's referred to, is meant to further drain pandemic-era stimulus from the financial system and increase borrowing rates for…