Fed Chair Powell Signals Potential End to Balance Sheet Reduction
Financial MarketsJerome PowellUpdated 18 hours ago

Fed Chair Powell Signals Potential End to Balance Sheet Reduction

Federal Reserve Chair Jerome Powell has indicated that the central bank may soon halt its balance sheet reduction process, which has been ongoing for over three years. This shift could signal a change in monetary policy, potentially impacting interest rates and fostering economic growth. Investors are closely monitoring these developments as they may influence market stability and the overall economic landscape.

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Fed’s Powell says the end of balance sheet drawdown process may be nearing
NeutralFinancial Markets
Federal Reserve Chair Jerome Powell has indicated that the process of reducing the central bank's balance sheet may be coming to an end. This is significant as it could signal a shift in monetary policy, potentially impacting interest rates and economic growth. Investors and economists are closely watching these developments, as they could influence market stability and the overall economic landscape.
Fed Chair Powell left the central bank on track to reduce rates again at this month’s meeting and suggested it could be close to ending a campaign to passively reduce its $6.6 trillion asset holdings
PositiveFinancial Markets
Fed Chair Jerome Powell has indicated that the central bank is on track to potentially reduce interest rates again in the upcoming meeting. This is significant as it suggests a shift in monetary policy that could stimulate economic growth. Additionally, Powell hinted that the Fed might be nearing the end of its three-year effort to reduce its $6.6 trillion asset holdings, which could lead to more stability in financial markets.
Powell Says Fed Might Stop Shrinking Balance Sheet Soon
PositiveFinancial Markets
Federal Reserve Chair Jerome Powell announced that the central bank might soon halt its balance sheet reduction, a move that could signal a shift in monetary policy. This is significant as it may indicate a more accommodative stance towards the economy, potentially fostering growth and stability in financial markets.
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
NeutralFinancial Markets
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.

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