Federal Reserve Chair Signals Possible End to Quantitative Tightening

The central bank may halt balance sheet reduction in the near future, marking a shift in monetary policy direction.

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Terms & Concepts
  • Quantitative Tightening: A monetary policy tool where a central bank reduces its balance sheet holdings, often by selling assets or letting them mature, to decrease liquidity in the financial system.
  • Federal Reserve: The central banking system of the United States, responsible for implementing monetary policy, regulating banks, and ensuring financial stability.