Federal Reserve Governor Christopher Waller emphasized that the timing of balance sheet redemptions will be independent of policy rate changes. Waller mentioned the current overnight repo usage of about $500 billion, indicating a potential reduction in holdings. He highlighted the importance of continued reduction in MBS reductions and expressed a desire for a shift in Treasury holdings towards shorter-dated securities. Waller clarified that upcoming balance sheet decisions will not impact monetary policy.
Why are 2-year yields tumbling? This line from Waller: "I would like to see a shift in Treasury holdings toward a larger share of shorter-dated Treasury securities" https://t.co/5MWErrCAPC
Waller says he would like the central bank to boost share of short term Treasuries...funny one day after $NYCB news... US two-year yields extended its decline and hit 4.55% after Federal Reserve Governor Christopher Waller said he would like the central bank to boost its shareβ¦
Waller says he would like the central bank to boost share of short term Treasuries... US two-year yields extended its decline and hit 4.55% after Federal Reserve Governor Christopher Waller said he would like the central bank to boost its share of short-term Treasuries.β¦
β οΈ FED'S WALLER: UPCOMING BALANCE SHEET DECISIONS HAVE NO BEARING ON MONETARY POLICY (Reuters) The Federal Reserve's upcoming decisions about the ultimate size of its balance sheet has no bearing on the central bank's inflation fight or changes to its policy interest rate, Fedβ¦ https://t.co/L8JuViwf26
π΄ FED'S WALLER - THOUGHTS ON QUANTITATIVE TIGHTENING, INCLUDING REMARKS ON THE PAPER "QUANTITATIVE TIGHTENING AROUND THE GLOBE: WHAT HAVE WE LEARNED?" - FULL SPEECH. https://t.co/fsOr5io4CK
Fed's Waller: Upcoming Balance Sheet Decisions Have No Bearing On Monetary Policy
π΄ FED'S WALLER: LOW PREPAYMENTS HAVE KEPT MBS REDUCTIONS TO ABOUT $15 BLN A MONTH, IT'S IMPORTANT TO SEE CONTINUED REDUCTION.
π΄ FED'S WALLER: I'D LIKE TO SEE TREASURY HOLDINGS SHIFT TO LARGER SHARE OF SHORTER-DATED SECURITIES.
π΄ FED'S WALLER: THE TIMING OF BALANCE SHEET REDEMPTIONS PACE WILL BE INDEPENDENT OF ANY CHANGES TO THE POLICY RATE.
π΄ FED'S WALLER: THE CURRENT OVERNIGHT REPO USAGE OF ABOUT $500 BLN TELLS ME THAT WE CAN CONTINUE TO REDUCE OUR HOLDINGS FOR SOME TIME.