(Bloomberg) -- Federal Reserve Governor Christopher Waller said the banking system still has enough reserves for the central bank to keep its monthly runoff of Treasury securities unchanged.

Policymakers agreed this week to shrink the Fed’s balance sheet at a slower pace. Beginning in April, the Fed will lower — to $5 billion from $25 billion — the monthly cap for Treasuries on its balance sheet that it allows to mature without being reinvested. Officials left unchanged the cap on the rolloff of mortgage-backed securities at $35 billion.

Waller dissented against that decision preferring to maintain the pace of the Treasuries runoff at $25 billion a month. He agreed with the Fed’s decision to keep interest rates unchanged.

“Slowing further or stopping redemptions of securities holdings will be appropriate as we get closer to an ample level of reserves,” Waller said in a statement released Friday by the Fed’s Board of Governors. “But in my view we are not there yet because reserve balances stand at over $3 trillion and this level is abundant.”

Waller went on to say there was “no evidence from money market indicators or my outreach conversations that the banking system is getting close to an ample level of reserves.”

Waller said the Fed has a “variety of tools to address” market disturbances as it runs down its portfolio.

The US central bank bought billions in US Treasuries to smooth over market disruptions and add economic stimulus after the pandemic struck the US economy in 2020. Total assets on the balance sheet soared to $8.97 trillion in April 2022 versus $4.2 trillion at the start of 2020.

The central bank has been winding down its holdings since June 2022 — a process known as quantitative tightening, or QT. It last lowered its monthly cap in June 2024 to $25 billion from $60 billion.