[The Federal Reserve May Announce the End of Balance Sheet Reduction Next Week] Economists analyze that the Federal Reserve may announce the end of balance sheet reduction in next week's rate decision, due to signs of funding pressure in the repo market. Federal Reserve Chairman Powell has previously hinted at waiting for the right time to end the balance sheet reduction. It is expected that the Federal Reserve will offset maturing mortgage-backed securities by purchasing U.S. Treasury bonds to maintain the stability of the balance sheet size, while the supply of short-term Treasury bonds may decrease by approximately $20 billion per month.
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