24/4/2025, 8:27:02 am

Fed's Hammack sees more runway for Fed balance sheet cuts

Cleveland Fed President Beth Hammack supports ongoing balance sheet reductions, noting ample reserves and risks of large holdings promoting risk-taking. She advocates patience on monetary policy changes, supports slower QT to avoid market disruption, and highlights the balance sheet's reduction from $9T to $6.8T since 2022. Temporary liquidity interventions may be needed.