Washington: Federal Reserve Chair Jerome Powell on Wednesday said that while policymakers have decided on a swifter end to the asset purchases that have been padding its easy-money policy throughout the pandemic, they have made no decision yet on whether to start shrinking the central bank's balance sheet.
That issue will be among the many - including whether to raise interest rates to combat stiff inflation - that the Fed will discuss in its coming meetings, Powell said at a news conference after the central bank's latest policy meeting at which it decided to double the pace of its bond purchase "tapering" exercise.
The Fed will cease adding to its nearly $8.2 trillion stash of Treasuries and mortgage-backed securities by mid-March, about three months earlier than under the initial tapering pace announced last month.
Officials have not decided what to do about the asset holdings beyond that, Powell said. Even held at a steady level starting in March, the stockpile will still provide accommodation, he said, just not "further accommodation."
That issue will be among the many - including whether to raise interest rates to combat stiff inflation - that the Fed will discuss in its coming meetings, Powell said at a news conference after the central bank's latest policy meeting at which it decided to double the pace of its bond purchase "tapering" exercise.
The Fed will cease adding to its nearly $8.2 trillion stash of Treasuries and mortgage-backed securities by mid-March, about three months earlier than under the initial tapering pace announced last month.
Officials have not decided what to do about the asset holdings beyond that, Powell said. Even held at a steady level starting in March, the stockpile will still provide accommodation, he said, just not "further accommodation."