Fed's Focus Shifts: Slowing Quantitative Tightening is Key

As interest-rate reductions remain off the agenda, the US Federal Reserve’s attention turns towards moderating the pace of quantitative tightening (QT) during its upcoming policy meeting. QT involves scaling back the Fed’s substantial securities holdings, accumulated to bolster the economy previously. A definitive strategy for this slowdown is expected by mid-year, underscoring that the impact of where QT ultimately ends is more critical than the rate at which it proceeds.