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Powell: Fed may stop shrinking balance sheet

Financial Express Bengaluru

|

October 15, 2025

FEDERAL RESERVE CHAIR Jerome Powell signalled the central bank may stop shrinking its balance sheet in the coming months. The Fed chair also indicated labour-market prospects continue to worsen, a message that supports investors’ expectations for another interest rate cut this month.

- AMARA OMEOKWE, ALEXANDRA HARRIS & MARIA ELOISA CAPURRO

“Our long-stated plan is to stop balance sheet runoff when reserves are somewhat above the level we judge consistent with ample reserve conditions,” Powell said Tuesday in remarks prepared for an event with the National Association for Business Economics in Philadelphia.

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