Kinitlburuks No decision yet on balance sheet reduction, Powell says

Fed Chair Jerome Powell said the central bank has not yet come to a decision on how to change the pace of its balance sheet reduction, but he noted that an adjustment isn’t far off.

“The general sense of the committee is that it will be appropriate to slow the pace of run-off fairly soon, consistent with the plans we’ve previously issued,” Powell said.

The shape of the balance sheet run-off plan can impact supply in the bond market and is closely watched by fixed income traders.