United States Federal Reserve Chair Jerome Powell stated on Wednesday, after the central bank decided to slow balance sheet reduction, that "it was a good time" to do it.
Speaking at the FOMC press conference, Powell said that the Fed intends to lower the pace of quantitative tightening (QT). "We're going to cut it roughly in half, and the sense is if you are cutting the pace of QT roughly in half then the runway is probably doubled," he noted, adding that the pace of QT is expected to be "slower for longer."
The central bank emphasized that the decision to slow balance sheet reduction has no "implication for monetary policy" or for the ultimate size of the balance sheet, ensuring that it is "very consistent with" the Fed's plans and policies.
