The Federal Reserve's latest minutes reveal a cautious approach towards its balance sheet reduction, with policymakers generally favoring a slowdown in the pace of shrinking the central bank's asset portfolio. Specifically, there was a consensus on reducing the $60 billion monthly cap on Treasury redemptions by half, while maintaining the $35 billion monthly runoff of mortgage-backed securities without adjustments. This strategy indicates a preference for a more measured approach to balance sheet tapering, amidst discussions on interest rate plans and overall financial stability.
Fed looks to slice balance sheet runoff pace by half https://t.co/JXQ40UC2HK https://t.co/9aXkoaC0pt
Real news in today's @federalreserve minutes is on balance sheet reduction. Staff briefed options for tapering. Policymakers: "Generally favored" reducing $60b monthly cap by half; Saw no need to trim $35b MBS runoff; "Vast majority" favored tapering "fairly soon." 1/2
Fed officials back cautious approach to further shrinking of its balance sheet, minutes show https://t.co/pIpDvfvQgW
Federal Reserve policymakers “generally favored” slowing the pace at which they're shrinking the central bank's asset portfolio by roughly half, minutes from their latest gathering showed. https://t.co/3fKdcCaMIH
FED MINUTES: PARTICIPANTS SAW LITTLE NEED TO SLOW MORTGAGE-BACKED SECURITIES RUNOFF, PREFERRING TO ADJUST CAP ON TREASURIES REDEMPTIONS
Fed Minutes to Shed Light on Interest-Rate, Balance-Sheet Plans https://t.co/vomvQ9CCxa