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: 01.11.2026 Expectation: 6300 pips
Buy Tesla stock with $430 in sight
Today at 08:51 AM 11
Period: 20.11.2026 Expectation: 1200 pips
Invest in AUDUSD ahead of Fed and RBA meetings
Today at 06:56 AM 11
Period: 19.11.2026 Expectation: 9435 pips
Buying silver up to $67.00
Yesterday at 10:16 AM 24
Gold buy
Period: 31.10.2026 Expectation: 200 pips
Go long on gold with $4,375 in mind
Yesterday at 06:40 AM 31
Period: 16.11.2026 Expectation: 5700 pips
Invest in GBPUSD up to 1.38700
16 October 2026 85
Period: 31.10.2026 Expectation: 1300 pips
Selling AUDCAD from 0.9890
16 October 2026 90
Go to forecasts