Fed's Waller backs steady rates, ongoing asset reduction - Breaking The News

Fed's Waller backs steady rates, ongoing asset reduction

21 March

1 min read

EPA-EFE/MICHAEL REYNOLDS

Federal Reserve Board of Governors member Christopher Waller stated on Friday that he backed no change in the federal funds' target range during the most recent Federal Open Market Committee (FOMC) meeting, but preferred to continue the current pace of decline in securities holdings.

He warned that with over $3 trillion in reserves, the banking system still maintains abundant liquidity, noting that despite the slower pace of asset redemptions introduced in June 2024, conditions don’t yet justify halting the drawdown. The Federal Reserve should prepare to act swiftly with existing tools if short-term reserve pressures arise, Waller argued.

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