Powell Says Federal Reserve Has Greater Flexibility on Balance Sheet Size
Federal Reserve Chair Jerome Powell highlighted increased flexibility in managing the central bank’s balance sheet amid evolving economic conditions.
Fact Check
Multiple sources directly corroborate the statement. A CNBC article from January 2019 explicitly states, 'He also mentioned flexibility in terms of the balance sheet.' A PBS article from the same period reports that Powell said the Fed 'could alter its approach to trimming its huge balance sheet if it determines such a change is needed.' The concept is further supported by a source discussing the Fed's strategic review, which resulted in 'more discretion' (a synonym for flexibility) regarding its policy tools, including the balance sheet.
Summary
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Terms & Concepts
- Federal Reserve Balance Sheet: A record of the assets and liabilities held by the Federal Reserve, influencing monetary policy and financial market conditions.