Reuters reported that the three new Federal Reserve governors, Vice Chairman Philip Jefferson, Lisa Cook and Adriana Kugler, told US Senator Rick Scott in a letter that it is unclear how much longer the process of reducing the Fed’s balance sheet will last. Fed. They explained that the process does not have an imminent end.
“The size of our balance sheet will ultimately depend on public demand for our liabilities, particularly foreign exchange and reserves, and we cannot specify in advance what that demand will be, hence we are not targeting any particular dollar value for our balance sheet. “the letter said, according to Reuters.
The governors consider that “under plausible assumptions, the size of the balance sheet could decline considerably further before reserves reach the level consistent with the ample reserves operating framework.”
Market reaction
The US dollar is mixed on Thursday, holding firm with weekly losses as market participants believe the Federal Reserve is done raising interest rates. The DXY loses 0.10% and stands at 104.30.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
