The central bank made a big move — the balance sheet reduction operation has officially been halted.
So what does this mean? The Fed is no longer rolling over maturing bonds, which means it has ended the process of pulling liquidity from the market. Thus, a critical leg of the long-standing period of monetary tightening has closed.
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The central bank made a big move — the balance sheet reduction operation has officially been halted.
So what does this mean? The Fed is no longer rolling over maturing bonds, which means it has ended the process of pulling liquidity from the market. Thus, a critical leg of the long-standing period of monetary tightening has closed.