Key Metrics
11.55
Heat Index-
Impact LevelMedium
-
Scope LevelNational
-
Last Update2025-11-07
Key Impacts
Positive Impacts (8)
Negative Impacts (1)
Event Overview
Central bank policy shift towards balance sheet expansion through bond purchases, reflecting a response to market conditions and reserve adequacy. This move indicates a potential easing of monetary policy and could impact financial markets and economic stability.
Collect Records
Fed to Stop Reducing Bond Holdings and May Soon Start Purchasing Bonds
Federal Reserve official Williams stated that the Fed has decided to stop reducing its bond holdings and may soon need to purchase bonds to expand its balance sheet. He noted that when reserve levels move from 'slightly above adequate' to 'adequate,' a gradual asset purchase process will be initiated. Based on current market conditions, this target is expected to be reached soon. Some analysts predict that the Fed may start expanding its balance sheet in the first quarter of next year. Williams emphasized that it is difficult to determine the exact timing and warned that the purpose of purchasing bonds is to maintain appropriate liquidity, not as a stimulus measure.