Federal Reserve’s Shield: How Economic Stewardship Transcends Political Pressure
The Foundation of Federal Reserve Independence In a recent address, the San Francisco Fed President underscored the critical importance of…
Tag: Monetary policy
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.
Understanding Quantitative Tightening and Balance Sheet Reduction
Federal Reserve Signals Rate Cuts as Powell Acknowledges Shifting Economic Priorities
Federal Reserve Chair Jerome Powell delivered his clearest signal yet that rate cuts are approaching, acknowledging rising unemployment risks alongside cooling inflation. The shift in tone sparked immediate market enthusiasm, with investors anticipating potential parabolic moves in the fourth quarter.
In a significant departure from his typically cautious communication style, Federal Reserve Chair Jerome Powell delivered what markets interpreted as the strongest signal yet that monetary policy easing is on the horizon. During his Tuesday address to the National Association for Business Economics, Powell acknowledged mounting “downside risks to unemployment” while suggesting the central bank may need to move toward a more neutral policy stance.