Fed plans to trim balance sheet by $95B a month - Breaking The News

Fed plans to trim balance sheet by $95B a month

6 April

1 min read

EPA-EFE/JIM LO SCALZO

The United States Federal Reserve reached a consensus on the need to shrink its balance sheet by $95 billion per month, the Federal Open Market Committee (FOMC) said in minutes from its March meeting released on Wednesday.

"Participants generally agreed that monthly caps of about $60 billion for Treasury securities and about $35 billion for agency [mortgage-backed securities] MBS would likely be appropriate," the statement read. According to the statement, participants also agreed that the caps could be introduced over a period of three months or "modestly longer if market conditions warrant."

The minutes also noted that "many participants" were of opinion that one or more 50-basis-point interest rate increases would be an appropriate response to risks to the country's price stability.

inflation fed fomc minutes

Fed's Goolsbee: Inflation could rise if tariffs spark trade war

5 hours ago

Federal Reserve Bank of Chicago President Austan Goolsbee said a major global trade conflict could drive inflation higher. He pointed to a nearly unparalleled scenario in which strong US economic data exists alongside widespread uncertainty. Goolsbee said the Fed continues to monitor the data, but also hears growing public anxiety. He warned that steep tariffs, especially if met with countermeasures, could push up prices. Goolsbee added that a global...

Trump: US bringing in billions of dollars a week

20 hours ago

United States President Donald Trump said on Monday that the "slow-moving" Federal Reserve should cut interest rates, arguing that "there is no inflation" and that oil and food prices are down.Trump also claimed that the US is "bringing in billions of dollars a week" from tariffs that are already in place. He accused China of being "the biggest abuser of them all" and slammed its decision to impose a 34% retaliatory tariff on US imports, "not acknowledging my...

JPMorgan CEO: Tariffs may fuel inflation

20 hours ago

JPMorgan Chase & Co Chief Executive Officer Jamie Dimon warned on Monday that sweeping tariffs introduced by the US administration may drive consumer prices up."We are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products," Dimon said in a letter to shareholders, ensuring that the tariff policies will slow the pace of growth and raise recession concerns. He...

Powell: Employment, PCE crucial data for Fed

4 April

Federal Reserve Chair Jerome Powell emphasized on Friday that employment and inflation remain core data points guiding monetary policy, with the labor market presenting particular complexity.He reiterated that while the public often focuses on the Consumer Price Index (CPI), the Federal Reserve targets inflation using the Personal Consumption Expenditures (PCE) Price Index, which better reflects shifts in consumer behavior. Powell stressed the importance...

This website uses cookies to ensure you get the best experience. Our Terms of Use and Data Protection Policy explain the data we collect, why we collect them, and how we may share them.