Fed Chair Powell hinted the central bank could be approaching the end of a more than three-year campaign to shrink a portfolio of Treasury securities it acquired to provide stimulus after the 2020 pandemic

Fed Chair Jerome Powell has indicated that the central bank may be nearing the end of its strategy to reduce its substantial portfolio of Treasury securities, which was initially acquired to stimulate the economy during the pandemic. Since mid-2022, the Federal Reserve has been gradually unwinding its $6.6 trillion asset holdings as part of a broader effort to normalize monetary policy. This development is significant as it reflects the Fed's ongoing adjustments in response to economic conditions and could impact future interest rates and market stability.