Federal Reserve to slow securities portfolio reduction

The Federal Reserve has announced changes to its securities portfolio strategy. The Federal Open Market Committee will continue to reduce its holdings of Treasury securities and agency debt. They will also cut their holdings of agency mortgage-backed securities. Starting in April, the pace of these reductions will slow down. This means the Fed will take a more gradual approach to decreasing its securities holdings compared to previous months. The decision comes as the Fed aims to manage economic conditions carefully. This move is intended to balance growth while controlling inflation. No specific details were shared about the exact amount or timeline of these changes. However, the Fed’s actions are closely watched by analysts and investors alike.