Fed Meeting Minutes Preview: May Signal End to Balance Sheet Reduction Near

Techub News, according to Jinshi Data, the minutes of the Federal Reserve's September meeting may reveal that officials are weighing whether to end the balance sheet reduction plan. The Fed has been reversing some of the pandemic-era stimulus measures by shrinking its balance sheet. However, Citigroup economists pointed out that movements in the interest rate market suggest that financing conditions have tightened, which may indicate that the scale of the balance sheet is approaching the level desired by the Fed. The Citigroup team wrote: "As liquidity declines, volatility in short-term interest rates has increased. This may prompt officials to at least discuss the possibility of eventually ending the balance sheet reduction."