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MNI BRIEF: Powell Says Fed's QT Has 'Quite A Ways To Go'

Fed Chair Powell testifies before Congress.
USPolicy NewsHomepageCentral Bank NewsFederal ReserveEM Policy NewsNorth AmericaEM BriefEM Central Bank NewsBriefGlobalStoryRegion

MNI (WASHINGTON) - MNI (WASHINGTON) - Federal Reserve Chair Jerome Powell said Wednesday the Fed believes it has a "good ways to go" on its quantitative tightening program before the number of reserves in the financial system is too low and causes disruptions. 

"We now slowed the pace, really, with a view to getting as far as we can without creating frictions and disruption that might cause us to prematurely stop shrinking" the balance sheet, Powell told lawmakers on Capitol Hill. "Going a little bit slower might actually enable us to go further. We think we have quite a ways to go. Very hard to be precise about it. It's really a question of supply and demand, and we will find that level with a little bit of a buffer on top of it, and that's where we'll stop." 

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MNI (WASHINGTON) - MNI (WASHINGTON) - Federal Reserve Chair Jerome Powell said Wednesday the Fed believes it has a "good ways to go" on its quantitative tightening program before the number of reserves in the financial system is too low and causes disruptions. 

"We now slowed the pace, really, with a view to getting as far as we can without creating frictions and disruption that might cause us to prematurely stop shrinking" the balance sheet, Powell told lawmakers on Capitol Hill. "Going a little bit slower might actually enable us to go further. We think we have quite a ways to go. Very hard to be precise about it. It's really a question of supply and demand, and we will find that level with a little bit of a buffer on top of it, and that's where we'll stop."