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: 15.07.2026 Expectation: 3500 pips
Sell GBPUSD with 1.30000 in view
Yesterday at 10:24 AM 31
Gold sell
Period: 31.05.2026 Expectation: 6000 pips
Gold sell-off targets $4,640
Yesterday at 09:51 AM 27
Period: 22.05.2026 Expectation: 620 pips
USDCAD challenges key resistance as bulls lose their grip
Yesterday at 09:29 AM 16
Period: 29.05.2026 Expectation: 180 pips
Purchasing Brent crude amid global energy deficit
Yesterday at 08:40 AM 30
Period: 22.05.2026 Expectation: 600 pips
AUDCAD pulls back on profit-taking after reaching five-year high
Yesterday at 06:48 AM 24
Period: 28.05.2026 Expectation: 155 pips
Investing in ETHUSD up to $2,425
14 May 2026 48
Go to forecasts