Fed's Powell hints at nearing end of rate hikes and balance sheet reduction

Federal Reserve Chair Jerome Powell indicated that the end of the Fed's quantitative tightening process may be near as liquidity conditions tighten and the reverse repo facility nears zero usage, signaling a potential shift in monetary policy. Powell emphasized the importance of the Fed's balance sheet tools and warned against removing its interest-paying powers, highlighting the delicate balance the Fed maintains to control interest rates and financial stability.