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MNI BRIEF: Fed's Powell Says QT Could Continue After Rate Cuts


The Federal Reserve could keep shrinking its balance sheet even after it eventually begins to cut interest rates, Fed Chair Powell said Wednesday.

"That could happen," Powell said in response to a press conference question from MNI. "There are two independent things. The active tool of monetary policy is rates. But you can imagine circumstances in which it would be appropriate to have them working in what might be seen to be different ways -- but that wouldn't be the case." (See MNI INTERVIEW: RRP Drop Creates Room For Fed QT)

MNI Washington Bureau | +1 202 371 2121 |
MNI Washington Bureau | +1 202 371 2121 |

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