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: 03.03.2026 Expectation: 5800 pips
Investing in silver with $96.50 in view
Today at 11:50 AM 25
Period: 04.03.2026 Expectation: 1000 pips
NVIDIA stock is trading near 2026 highs in anticipation of strong Q4 report
Today at 10:52 AM 41
Period: 04.03.2026 Expectation: 1390 pips
Rising oil prices put brakes on USDCAD
Today at 10:04 AM 22
Period: 27.02.2026 Expectation: 650 pips
Buying NVIDIA ahead of earnings report
Today at 08:58 AM 12
Period: 31.03.2026 Expectation: 12500 pips
Accumulate Tesla stock for long run
Today at 08:33 AM 19
Brent sell
Period: 31.03.2026 Expectation: 150 pips
Selling Brent upon breaking $70.85 support
Today at 08:32 AM 19
Go to forecasts