Federal Reserve’s Quantitative Tightening Nears Conclusion as Powell Signals Balance Sheet Drawdown Endgame
Federal Reserve Chair Jerome Powell suggests the central bank’s balance sheet reduction program may be approaching its final stages. The Fed is closely monitoring liquidity conditions and money market indicators to determine the appropriate endpoint for quantitative tightening.
Federal Reserve Chair Jerome Powell has signaled that the central bank’s prolonged effort to shrink its massive balance sheet may be nearing completion. In remarks delivered at the National Association for Business Economics gathering in Philadelphia, Powell indicated that the quantitative tightening process could approach its conclusion in the coming months as the Fed monitors key financial indicators.