Federal Reserve Chairman Jerome Powell announced that the Fed has not made any decisions about future meetings today, emphasizing that any future decisions will depend on incoming data. Powell highlighted discussions around the slowing pace of the balance sheet runoff, indicating that a smooth transition is anticipated "fairly soon", which would mitigate the risk of money market stress and avoid disruption to money markets. He noted that the general sense among Fed officials is that the runoff will start fairly soon, but no specific decisions were made regarding the timing. This approach aims to ensure a smooth transition and limit the risk to money market volatility, potentially acting as a marginal easing of monetary policy relative to the baseline.
POWELL: WE MADE NO DECISIONS ABOUT FUTURE MEETINGS TODAY; WILL DEPEND ON DATA
POWELL: SLOWING PACE OF RUNOFF WILL ENSURE SMOOTH TRANSITION, MITIGATING CHANCE OF MONEY MARKET STRESS
*POWELL: DIDN'T MAKE ANY DECISIONS ABOUT FUTURE MEETINGS TODAY will wait for the polling data first
POWELL: SLOWING PACE OF RUN OFF WILL ENSURE A SMOOTH TRANSITION
POWELL: OUR GENERAL SENSE IS WE WILL START RUN OFF FAIRLY SOON
Fed’s Powell: Discussed Issues Related To Slowing Pace Of Decline In B/Sheet Holdings - General Sense Is Slowing Pace Of Run Off ‘Fairly Soon’ - Slowing Pace Of Run Off Will Ensure Smooth Transition - Will Limit Risk To Money Market Volatility $DXY $USDJPY #FOMC
Powell re: QT "appropriate to slow the pace of runoff fairly soon". This is all about avoiding disruption to money markets, but is still a de facto (marginal) easing of monetary policy relative to baseline.
POWELL SAYS APPROPRIATE TO SLOW PACE OF ASSET RUNOFF FAIRLY SOON
POWELL: FED DID NOT MAKE ANY DECISIONS TODAY ON BALANCE SHEET POWELL: BALANCE SHEET RUNOFF TO SLOW "FAIRLY SOON"
POWELL SAYS FED DID NOT MAKE ANY DECISIONS TODAY ON BALANCE SHEET
🔴 FED'S POWELL: ON THE BALANCE SHEET, WE DISCUSSED ISSUES RELATED TO SLOWING PACE OF DECLINE IN HOLDINGS, OUR GENERAL SENSE IS WE WILL START RUN OFF FAIRLY SOON.