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Federal Reserve to End Reduction of $6.6 Trillion Balance Sheet
Summary: According to data from the Jinshi Data APP, the Federal Reserve announced on Wednesday that it will end the reduction of its $6.6 trillion balance sheet, citing evidence of tightening liquidity conditions in the money markets and a decrease in bank reserve levels. Starting from December 1st, the Fed will seek to stabilize its holdings ...
According to data from the Jinshi Data APP, the Federal Reserve announced on Wednesday that it will end the reduction of its $6.6 trillion balance sheet, citing evidence of tightening liquidity conditions in the money markets and a decrease in bank reserve levels. Starting from December 1st, the Fed will seek to stabilize its holdings of Treasury securities by rolling over maturing bonds, rather than allowing monthly reductions of up to $50 billion in Treasury securities. The Fed also stated that it will maintain its current plan to allow up to $350 billion in mortgage-backed securities to mature each month, a target not reached in over three years. However, starting from December 1st, all principal from maturing mortgage-backed securities will be reinvested in U.S. Treasuries.
