20 March 2025 | Dollar

Bloomberg: Fed to slow balance sheet reduction next month

Bloomberg: Fed to slow balance sheet reduction next month

Starting April 1, the Federal Reserve (Fed) will slow its balance sheet reduction by lowering the monthly limit on Treasuries that can be redeemed without reinvestment from $25 billion to $5 billion. The limit on mortgage-backed securities will remain at $35 billion, according to a report by Bloomberg.

The decision comes as lawmakers work to reach an agreement on raising the national debt ceiling, which the country hit in January. Until the issue is resolved, the Fed plans to stay flexible, potentially slowing or suspending its balance sheet reduction, the agency said.

Despite this move, the size of the balance sheet will remain unchanged in the medium term, Federal Reserve Chair Jerome Powell stated.

Elena Dorokhina MarketCheese
Period: 06.04.2026 Expectation: 6500 pips
Active silver sell-off gives way to accumulation phase
Yesterday at 11:52 AM 43
Period: 29.05.2026 Expectation: 3600 pips
Selling EURUSD down to 1.11500
Yesterday at 11:09 AM 24
Period: 30.04.2026 Expectation: 1300 pips
Investing in SPX up to $6,500
Yesterday at 10:14 AM 18
Period: 30.04.2026 Expectation: 1100 pips
Selling EURUSD on strong NFP report
Yesterday at 10:14 AM 17
Gold sell
Period: 03.04.2026 Expectation: 2000 pips
Gold selloff targets $4,300
Yesterday at 08:50 AM 32
Period: 06.04.2026 Expectation: 1700 pips
S&P 500 stages recovery after its five-week slide
Yesterday at 07:38 AM 20
Go to forecasts