April 17, 2024 17:27 GMT
NY Fed Report Shows Projection With Portfolio Reduction Ending 2025
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- The NY Fed’s annual report on its open market operations during 2023 (see here) shows projections with portfolio reduction stopping in 2025 and reserves bottoming out at $2.5.3tn in 2026.
- It comes following prior guidance from Chair Powell at the March FOMC press conference that “it will be appropriate to slow the pace of run-off fairly soon”.
- The minutes for the meeting showed a preference for reducing the monthly runoff pace by half.
Source: NY Fed
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