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  • Mar 19, 2025

Fed to Shrink Balance Sheet at Slower Pace Until Debt-Ceiling Deal Reached

(Bloomberg) -- The Federal Reserve said it will start shrinking its balance sheet at a slower pace starting next month, reducing the amount of bond holdings it lets roll off every month. Most Read from BloombergDespite Cost-Cutting Moves, Trump Plans to Remake DC in His StyleAmtrak CEO Departs Amid Threats of a Transit Funding PullbackNYC Plans for Flood Protection Without Federal FundsThe Scary Thing About the Wildfire That Was StoppedA Malibu Model for Residents on the Fire FrontlinesOfficials

  • Mar 19, 2025

Instant View: Fed doesn't change rates, will slow pace of balance sheet reduction

Taking stock of the Trump administration's rollout of tariffs, Fed officials actually marked up their outlook for inflation this year, with their preferred measure of price increases expected to end the year at 2.7% versus the 2.5% pace anticipated in December. But the Federal Open Market Committee also marked down the outlook for economic growth for this year from 2.1% to 1.7%, with slightly higher unemployment by the end of this year. Fed Chair Jerome Powell said in post-statement news conference that he had no reason to believe that the U.S. was experiencing 1970s-style high inflation that prompted the Fed to sharply raise rates and induce a deep recession to defeat it.

  • Mar 19, 2025

Fed policymakers project two rate cuts this year, some see fewer

WASHINGTON (Reuters) -U.S. central bankers on Wednesday signaled they are likely to deliver two quarter-point interest-rate cuts later this year, the same median forecast as three months ago, even as they forecast slower economic growth and higher inflation. But there was substantial disagreement among policymakers about the appropriate path of policy, reflecting uncertainty over how the Trump administration's trade and other policies will play out in the real economy, and how the Federal Reserve should respond. As was widely expected, the Fed kept the policy rate unchanged in the 4.25-4.50% range.

  • Mar 19, 2025

Fed says it will slow balance sheet runoff process

WASHINGTON (Reuters) -The Federal Reserve said on Wednesday that starting next month it will slow the pace of its balance sheet drawdown amid an ongoing impasse over lifting the government’s borrowing limit, a shift that will likely hold for the remainder of the process. The shift on the balance sheet had been hinted at in the meeting minutes for the January FOMC meeting, released last month. Fed Governor Christopher Waller, who has at times been at odds with his colleagues over the management of the central bank's stock of cash and bonds, dissented against the shift in the balance sheet drawdown.

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