Tag

Asset Runoff

All articles tagged with #asset runoff

finance1 year ago

"Understanding the Federal Reserve's QT Tapering and Balance Sheet Discussions"

The Federal Reserve will engage in discussions this week regarding its balance sheet, focusing on when and how to slow the pace of draining excess cash from the financial system. The central bank will consider how much more it can shrink its $7.5 trillion portfolio of assets before potential issues arise, similar to those seen in 2019 prior to a funding squeeze.

finance2 years ago

"Fed Urged to Slow Asset Runoff Amid Repo Market Concerns"

Federal Reserve Bank of Dallas President Lorie Logan suggests that the Fed may need to slow down the pace of shrinking its portfolio of assets due to dwindling liquidity in financial markets, stating that while there is still sufficient liquidity overall, individual banks could face constraints. She believes it is now "appropriate" to start discussing the parameters for a potential decision to slow the balance-sheet runoff.