Federal Reserve chairman Jerome Powell on Tuesday flagged openness to further rate cuts amid global economic risks, and said the time to allow the Fed’s asset holdings to begin to expand again “is now upon us” in order to ensure money markets function smoothly. Recent volatility in U.S. short-term funding markets raised concern that the Fed had allowed its balance sheet to become too small, leaving banks with an inadequate supply of reserves to manage occasional periods of high demand. The Fed had been shrinking its balance sheet in recent months as it unwound crisis-era bond buying …read more
Source:: Yahoo Finance
