Powell: Eventually the Federal Reserve will expand its balance sheet again
2025-10-29 20:05:40
On October 30th, Federal Reserve Chairperson Jerome Powell said at a press conference that the Federal Reserve will have to expand the size of its balance sheet again at some point in the future after it just announced plans to stop shrinking it. After the latest FOMC (FOMC) meeting, Powell pointed out that in order to maintain sufficient liquidity in the financial system and control interest rates, the Federal Reserve will eventually increase its holdings again. "Reserves need to grow to cope with the expansion of the banking system and the economy, so at some point we will increase reserves," he said.
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