Fed slows pace of reducing balance sheet, increasing economic uncertainty

From Dow Jones & Company: 2025-03-19 14:37:00

The Federal Reserve announced it will slow the pace of reducing its balance sheet starting in April. The Fed had been allowing up to $25 billion in Treasuries to mature every month without reinvesting the proceeds, but will now reduce the roll-off to just $5 billion. The monthly redemption cap on agency debt and agency mortgage-backed securities will remain at $35 billion. Fed Governor Christopher Waller objected to the change in policy, preferring to continue the current pace of decline in securities holdings. The Fed’s statement also highlighted increased economic uncertainty.



Read more at Dow Jones & Company: Fed Slows Balance Sheet Runoff as Uncertainty Increases