Fed to Begin Tapering Balance Sheet Reduction Soon

Jerome Powell announces plans to slow the pace of the Federal Reserve's balance sheet runoff, aiming for a more gradual approach.

Federal Reserve Chair Jerome Powell indicates a tapering of the balance sheet reduction could start as early as the Fed's next meeting on April 30-May 1.
The move aims to avoid financial market stress by reducing the pace of quantitative tightening, which has seen about $1.4 trillion of bonds roll off the Fed's balance sheet.
The Fed's balance sheet reduction efforts began in mid-2022, with the goal of bringing inflation back to its 2% target.
Officials are considering a lower runoff cap on Treasuries to ensure ample reserves in the system, avoiding excessive liquidity drain.
The Federal Open Market Committee voted to hold the target range for the federal funds rate steady at between 5.25% and 5.5%.