The Federal Reserve has announced it will start tapering its Quantitative Tightening (QT) program in June. The reduction will be from $60 billion to $25 billion per month, a dovish surprise to the market. This move is expected to reduce the Treasury's funding hole from around $2.5 trillion to approximately $2.08 trillion.
The Federal Reserve said it will shrink its balance sheet at a slower place beginning in June https://t.co/7nnz3GlyKo
UBS: "Fed QT Tapering In June Is A Dovish Surprise. Not just the timing of the QT tapering – but also the amount is a dovish surprise: The market had broadly expected a reduction $30 bn from from $60bn, but the actual reduction is to $25 bn."
Fed tapering QT from $60 to $25 billion per month. This reduces the Treasury's funding hole (deficit + QT runoff) from ~$2.5 trillion to ~$2.08 trillion. https://t.co/qkUK2meJti
QE is not back. but Fed announced QT will begin to be tapered starting in June. That is a big deal https://t.co/fKrbcVsxhh
FOMC Leaves Rates Unch, Says (Bigger Than Expected) QT Taper To Start In June https://t.co/pYOo6i54MF
The Federal Reserve will begin winding down the pace of its QT programme in June
The Fed is tapering its QT program starting in June As if they ever did much to begin with 🤣