Monetary Policy & Inflation | US
Fed’s Quantitative Tightening to End in H2 2023
- By Dominique Dwor-Frecaut
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- 5 min read
Summary
- The US Federal Reserve (Fed) is trying to fine tune the size of its balance sheet to maintain ample reserves while limiting potentially contentious interest payments to banks.
- Relative to banks’ assets, reserves have already fallen to the level where, in 2018, the Federal Funds Rate (FFR) started to drift upward.
Summary
- The US Federal Reserve (Fed) is trying to fine tune the size of its balance sheet to maintain ample reserves while limiting potentially contentious interest payments to banks.
- Relative to banks’ assets, reserves have already fallen to the level where, in 2018, the Federal Funds Rate (FFR) started to drift upward.
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