Fed's Powell Affirms Balance Sheet Drawdown Progress Despite Rate Cuts
Wednesday, 18 September 2024, 13:47
Fed's Persistent Balance Sheet Strategy
In a recent statement, Federal Reserve Chair Jerome Powell reaffirmed the ongoing strategy to shrink the central bank's balance sheet even amid a backdrop of rate cuts. Powell noted that the financial system is characterized by strong liquidity, allowing for continued balance sheet adjustments.
Key Takeaways from Powell's Statement
- Balance Sheet Drawdown: The Fed is systematically working to reduce its assets.
- Rate Cuts and Liquidity: Current conditions support the balancing act of rate cuts while managing liquidity.
- Future Outlook: Ongoing assessments will guide future financial policy moves.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.