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MNI BRIEF: Fed's Powell Sees QT Lasting About 2 Years

(MNI) Washington

Federal Reserve Chair Jerome Powell said Wednesday models at the central bank suggest its "quantitative tightening" program could continue for about two years before a new equilibrium is reached in the level of reserves.

"The process of getting back down to the new equilibrium will take awhile," said Powell about reaching a minimum level of reserves in response to a question from MNI. "It's hard to be precise, but you know, the model would suggest that it could be between two, 2-1/2 years." In March, Chair Powell said the QT program could take around three years.

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Federal Reserve Chair Jerome Powell said Wednesday models at the central bank suggest its "quantitative tightening" program could continue for about two years before a new equilibrium is reached in the level of reserves.

"The process of getting back down to the new equilibrium will take awhile," said Powell about reaching a minimum level of reserves in response to a question from MNI. "It's hard to be precise, but you know, the model would suggest that it could be between two, 2-1/2 years." In March, Chair Powell said the QT program could take around three years.

Keep reading...Show less