The Federal Reserve said it will shrink its balance sheet at a slower place beginning in June, reducing the amount of Treasuries it lets roll off every month, a step meant in part to ease potential strain on money-market rates.
In the plan unveiled Wednesday, the Fed said it will lower the monthly cap on how much Treasuries it will allow to mature without being reinvested, to $25 billion from $60 billion, while keeping the cap for mortgage-backed securities unchanged at $35 billion.
Market observers had anticipated a reduction to a monthly cap of $30 billion for Treasuries. The ...
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