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Fed ‘generally agreed’ to phased-in $95 billion monthly balance sheet runoff, minutes show -Breaking


© Reuters. FILE PHOTO – The Federal Reserve Building is visible before the Federal Reserve Board is expected to announce plans to increase interest rates in March. It focuses on fighting inflation and Washington, U.S.A, January 26, 2022. REUTERS/Joshua Roberts

(Reuters). Federal Reserve officials last month “generally agreed to” trim $60 billion per monthly from Treasury and $35 billion from mortgage-backed securities. These amounts would be gradually implemented over a three-month period, or “modestly longer,” as noted in minutes from March 15-16’s policy meeting.

According to minutes released Wednesday, participants also agreed that it was appropriate to look at MBS sales after the balance sheet runoff had been “well underway”.

According to the minutes, no final decision was reached, however, officials did make “substantial progress” so that they could begin the work of shrinking the balance sheet “as soon as possible after the conclusion of the May 3-4) policy meeting.