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: 05.07.2026 Expectation: 2400 pips
Buying USDCAD with 1.41400 target
Today at 09:06 AM 4
Period: 12.06.2026 Expectation: 800 pips
GBPUSD is stuck in flat trend amid Middle East uncertainty
Today at 07:06 AM 6
Period: 11.06.2026 Expectation: 1650 pips
Selling S&P 500 with 7,370 in sight on rising likelihood of Fed’s hawkish policy
Yesterday at 11:51 AM 28
Gold buy
Period: 05.06.2026 Expectation: 290 pips
Buying gold with $4,770 in view
Yesterday at 11:13 AM 50
Period: 31.10.2026 Expectation: 1000 pips
Buying Ethereum up to $2,800
Yesterday at 10:59 AM 20
Period: 15.06.2026 Expectation: 600 pips
Invest in SPX as job growth holds steady
Yesterday at 10:59 AM 10
Go to forecasts