https://www.msn.com/en-us/money/mark...cid=spartandhp
Powell said the Fed is about to embark on more permanent operations to make sure the system has enough reserves and the market volatility events are controlled.
"This volatility can impede the effective implementation of monetary policy, and we are addressing it," Powell said in prepared remarks. "Indeed, my colleagues and I will soon announce measures to add to the supply of reserves over time."
President Donald Trump sharply criticized the balance sheet reduction, calling it "quantitative tightening" and charging that it was slowing economic growth.
Powell said the Fed is settling into an "ample reserves" regime and now sees that it is around the level banks need.
"As we indicated in our March statement on balance sheet normalization, at some point, we will begin increasing our securities holdings to maintain an appropriate level of reserves," he said. "That time is now upon us."
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