Fed to Stop Balance-Sheet Runoff on Dec. 1, Easing Liquidity Tightness

The Fed will end its balance-sheet runoff on Dec. 1 to ease funding strains; markets view it as stabilising rather than easing.

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46 days ago

Fed to Stop Balance-Sheet Runoff on Dec. 1, Easing Liquidity Tightness

Fed to Stop Balance-Sheet Runoff on Dec. 1, Easing Liquidity Tightness
The U.S. Federal Reserve announced it will end its balance-sheet runoff on December 1, pausing a multi-year unwind of Treasury and mortgage holdings. The tactical halt aims to ease liquidity stress in funding markets and give policymakers time to assess systemic resilience. Market response has been mixed: equities and risk assets saw supportive flows while some analysts warn the move is a stabilisation measure rather than a sign of imminent policy easing.
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