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: 10.06.2026 Expectation: 630 pips
EURUSD pulls back after failed attempt to settle above 1.1685
Yesterday at 11:30 AM 25
Period: 03.07.2026 Expectation: 1150 pips
Invest in USDCAD amid weak Canadian economic performance
Yesterday at 10:11 AM 31
Period: 03.07.2026 Expectation: 200 pips
Natural gas sell-off targets $2.83
Yesterday at 08:59 AM 26
Period: 10.06.2026 Expectation: 950 pips
NVIDIA set to rally after new processor reveal
Yesterday at 06:45 AM 24
Period: 30.06.2026 Expectation: 1000 pips
Invest in GBPUSD with 1.3575 target
Yesterday at 04:30 AM 21
Period: 30.06.2026 Expectation: 280 pips
​​SPX sell-off targets $7,550
Yesterday at 04:30 AM 24
Go to forecasts