Central Banks
‘A Few’ Fed Officials Signal They Could’ve Backed Keeping Balance-Sheet Runoff Pace
- Minutes from May 1 decision showed some favored higher cap
- Central bank will begin slowing the pace of its unwind in June
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“A few” Federal Reserve policymakers said they could have supported continuing the central bank’s balance-sheet unwind at the current pace or at a higher limit than what was announced three weeks ago.
The record of the April 30-May 1 Federal Open Market Committee meeting, released Wednesday, showed that a few participants suggested they could’ve backed maintaining the reduction of the Fed’s assets — a process known as quantitative tightening, or QT — unchanged, or a “slightly higher” redemption cap for Treasuries than was decided.