Federal Reserve: Will end the reduction of $6.6 trillion in the balance sheet

ChainCatcher news, the Federal Reserve stated on Wednesday that it will end the reduction of its $6.6 trillion balance sheet, as there is evidence that liquidity conditions in the money market have begun to tighten and bank reserves are declining.

The Federal Reserve announced that starting from December 1, it will seek to stabilize its holdings of Treasury securities by rolling over maturing Treasury bonds, rather than allowing a monthly reduction of up to $50 billion in Treasury securities. The Federal Reserve also stated that it will maintain its current plan to allow up to $35 billion in mortgage-backed securities to mature each month, a target that has not been reached in over three years, but starting from December 1, it will reinvest the principal of all maturing mortgage-backed securities into U.S. Treasury securities. (Jin Ten Data APP)