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Fed Leans Toward Shortening Maturity of Its Treasury Holdings

  • Quarles, Mester say they would favor such a portfolio shift
  • The move could have big implications for money markets
Operations At The Bureau Of Engraving And Printing As The $1 Bill Is Printed

Photographer: Andrew Harrer/Bloomberg

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Federal Reserve policy makers look to be leaning toward shortening the average maturity of their holdings of Treasury securities once they complete normalization of the balance sheet later this year.

Fed Vice Chairman for Supervision Randal Quarles and Cleveland Federal Reserve Bank President Loretta Mester both said this week they would favor such a move, while also noting that no final decision has been made.