Powell hints at long-term goals for Fed balance sheet

Jerome Powell gives testimony
Jerome Powell
Federal Reserve

Federal Reserve chairman Jerome Powell told US lawmakers on February 26 that roughly $1 trillion in reserves could be left on the Fed’s balance sheet once it stops its balance sheet winddown.

The $1 trillion figure, plus a buffer, is “a reasonable starting point, an estimate, of where [the Fed] might end up”, Powell said in testimony before Congress.

He said the estimated amount of reserves banks need to keep at the Fed has gone up “substantially” due to changing regulatory requirements. 


To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: