Federal Reserve Chair Jerome Powell indicated a forthcoming shift in the central bank's monetary policy, suggesting a potential easing of policy restraint within this year. Powell highlighted that the Federal Reserve is considering slowing the pace of its asset runoff 'fairly soon' to ensure a smooth transition and mitigate risks to money market volatility, with caps unchanged at $60 billion for Treasuries and $35 billion for MBS. He also mentioned that the policy rate is likely at its peak for this tightening cycle, assuming the economy evolves as expected. Discussions around the balance sheet's future, including a longer-term goal of shifting towards primarily Treasury assets, were also noted, though no specific decisions were made during the latest meeting. The Fed's approach aims to avoid market turbulence and ensure financial stability while closely monitoring money market conditions.