Fed winding down balance sheet contraction amid tightening money markets
Yahoo Finance·2025-10-30 05:06
By Michael S. Derby (Reuters) -The Federal Reserve on Wednesday said it is ending the drawdown of its still substantial balance sheet amid evidence money market liquidity conditions have begun tightening and bank reserve levels dropping. Instead of allowing up to $5 billion in Treasury securities to mature each month and not be replaced, the Fed said that beginning December 1 it would now seek to hold steady its stock of government bonds by rolling over maturing Treasuries. The Fed also said it was maint ...