Fed Meeting Minutes Preview: May Hint at End of Taper

BlockBeats News, October 9th, the Fed's September meeting minutes may show that officials are weighing whether to end the balance sheet tapering plan. The Fed has been shrinking its balance sheet to unwind some of the stimulus measures put in place during the pandemic. However, Citigroup economists point out that the trend in the interest rate market indicates that financing conditions have tightened, which may suggest that the balance sheet is approaching the level the Fed desires. The Citigroup team wrote, "With declining liquidity, there has been an increase in short-term rate volatility. This may prompt officials to at least discuss the possibility of ultimately ending the taper." (FXStreet)