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Fed Officials See Halving QT Pace Fairly Soon, Minutes Say

FED
(MNI) WASHINGTON
  • The "vast majority" of FOMC participants judged it would be "prudent" to begin slowing the pace of runoff "fairly soon," the minutes said.
  • FOMC participants "generally favored reducing the monthly pace of runoff by roughly half from the recent overall pace," the minutes said.
  • FOMC participants saw little need to adjust the cap on MBS redemptions. 
  • A "few participants" preferred to continue QT at current pace until market indicators begin to show signs that reserves are approaching an ample level. 
  • Staff projections suggested that total ON RRP balances might stabilize in coming months at either zero or a low level.
  • FOMC participants emphasized the underlying uncertainty about the level of reserves consistent with operating in an ample-reserves regime. 
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  • The "vast majority" of FOMC participants judged it would be "prudent" to begin slowing the pace of runoff "fairly soon," the minutes said.
  • FOMC participants "generally favored reducing the monthly pace of runoff by roughly half from the recent overall pace," the minutes said.
  • FOMC participants saw little need to adjust the cap on MBS redemptions. 
  • A "few participants" preferred to continue QT at current pace until market indicators begin to show signs that reserves are approaching an ample level. 
  • Staff projections suggested that total ON RRP balances might stabilize in coming months at either zero or a low level.
  • FOMC participants emphasized the underlying uncertainty about the level of reserves consistent with operating in an ample-reserves regime.