Fed's Powell: No Decisions on Future Meetings, Runoff Slowing 'Fairly Soon'

Federal Reserve Chairman Jerome Powell announced that the Fed has not made any decisions about future meetings today, emphasizing that any future decisions will depend on incoming data. Powell highlighted discussions around the slowing pace of the balance sheet runoff, indicating that a smooth transition is anticipated "fairly soon", which would mitigate the risk of money market stress and avoid disruption to money markets. He noted that the general sense among Fed officials is that the runoff will start fairly soon, but no specific decisions were made regarding the timing. This approach aims to ensure a smooth transition and limit the risk to money market volatility, potentially acting as a marginal easing of monetary policy relative to the baseline.