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MNI BRIEF: Fed's Waller Points To QT Taper Later In '24

(MNI) WASHINGTON

Federal Reserve Governor Christopher Waller said Tuesday he expects the central bank to begin tapering its "quantitative tightening" program sometime this year, but noted he would like to see mortgage-backed securities continue to roll off with a cap of USD35 billion per month.

"I would say sometime this year will be a reasonable thing to start thinking about it," said Waller about when the central bank could slow the pace of QT. The Fed governor added there is no reason for the central bank "to have anything in" the overnight reverse repo facility, suggesting some appetite for a longer drawdown in liquidity. "Personally, I don't think we need to taper the pace on MBS." (See: MNI INTERVIEW: Fed Could Hold Longer On 'Entrenched' Inflation)

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Federal Reserve Governor Christopher Waller said Tuesday he expects the central bank to begin tapering its "quantitative tightening" program sometime this year, but noted he would like to see mortgage-backed securities continue to roll off with a cap of USD35 billion per month.

"I would say sometime this year will be a reasonable thing to start thinking about it," said Waller about when the central bank could slow the pace of QT. The Fed governor added there is no reason for the central bank "to have anything in" the overnight reverse repo facility, suggesting some appetite for a longer drawdown in liquidity. "Personally, I don't think we need to taper the pace on MBS." (See: MNI INTERVIEW: Fed Could Hold Longer On 'Entrenched' Inflation)