breaking

Fed Officials Signal Flexibility on Balance Sheet Management

Federal Reserve officials indicated the central bank retains broad discretion over its Treasury bill purchase program and broader balance sheet strategy, pushing back against proposals to aggressively shrink monetary holdings.

New York Fed official Roberto Perli stated monthly T-bill acquisitions remain subject to adjustment based on prevailing market dynamics rather than following a locked-in trajectory.

Federal Reserve Governor Michael Barr characterized balance sheet reduction as the "wrong objective" during remarks at a New York University event, signaling reluctance to pursue aggressive contraction.

The comments reflect ongoing internal debate within the central bank regarding monetary accommodation levels as the Fed maintains its current interest rate posture. San Francisco Fed President Mary Daly emphasized the policy committee's consensus on rate decisions outweighs public divisions over specific approaches.

Governor Stephen Miran announced plans to depart the Fed upon the swearing in of incoming Chair Kevin Warsh.