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: 06.11.2026 Expectation: 1650 pips
Invest in Brent crude up to $115
Yesterday at 10:22 AM 25
Period: 20.10.2026 Expectation: 4500 pips
Buy Bitcoin with $90,000 in sight
Yesterday at 09:21 AM 21
Period: 31.12.2026 Expectation: 900 pips
AUDCAD upside may come into play in medium term
Yesterday at 05:28 AM 36
Period: 30.11.2026 Expectation: 300 pips
GBPUSD sell-off targets 1.3180
Yesterday at 05:28 AM 41
Period: 05.11.2026 Expectation: 105 pips
Invest in SPX with $7,815 target
05 October 2026 25
Period: 05.11.2026 Expectation: 2500 pips
Selling EURUSD amid debt market struggles in eurozone
05 October 2026 35
Go to forecasts