Fed's Powell Signals Extended Timeline for Balance Sheet Reduction

Reported about 17 hours ago

During recent congressional testimony, Federal Reserve Chairman Jerome Powell indicated that the central bank's balance sheet reduction, known as quantitative tightening (QT), is set to continue for an extended period. He noted that while the Fed has reduced its bond holdings by over $2 trillion, there are no signs yet of sufficient market liquidity depletion to warrant a conclusion to this process. Powell emphasized the importance of controlling overall market liquidity to maintain economic stability while avoiding a repeat of past liquidity crises.

Source: YAHOO

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