Federal Reserve Chair Jerome Powell signaled the central bank may stop shrinking its balance sheet in the coming months.
The Fed chair also indicated labor-market prospects continue to worsen, a message that supports investors’ expectations for another interest-rate cut this month.
“Our long-stated plan is to stop balance sheet runoff when reserves are somewhat above the level we judge consistent with ample reserve conditions,” Powell said Tuesday in remarks prepared for an event with the National Association for Business Economics in Philadelphia.
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