«We expect the first rate hike of the year at the March Fed meeting, a move fully priced in by the market, with continued gradual monetary
policy normalization under the new leadership of Fed Chair Jerome Powell,» Duncan says.
Not exact matches
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When asked for additional clarity during the March FOMC press conference she said only that shrinking the balance sheet is not predicated on a pre-specified level for the federal funds rate and that overall monetary
policy normalization would be «well
under way» before shrinking the balance sheet commenced.
However, the Fed decided to continue the reinvestment
policy for several more years, pointing to cessation when «
normalization of the level of the federal funds rate is well
under way.»
The Committee is maintaining its existing
policy of reinvesting principal payments from its holdings of agency debt and agency mortgage - backed securities in agency mortgage - backed securities and of rolling over maturing Treasury securities at auction, and it anticipates doing so until
normalization of the level of the federal funds rate is well
under way.
«We have said that we expect to maintain this
policy until
normalization of the level of the federal funds rate is well
under way,» she said.