Reported about 14 hours ago
As the Federal Reserve prepares to discuss interest rate cuts next week, there is growing urgency to reconsider its strategy of shrinking its $6.6 trillion securities portfolio due to alarming signals from money markets. With over $2 trillion withdrawn since the beginning of portfolio reduction and key liquidity indicators now under pressure, analysts suggest the Fed may need to end quantitative tightening (QT) as early as this month to avoid potential market distortions reminiscent of 2019. The central bank may adjust its policy to bolster reserves and stabilize short-term interest rates.
Source: YAHOO