Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School for Social Research and Doctor of Philosophy in English ...

The Federal Reserve System is the central bank of the United States and conducts the nation's monetary policy. The primary goals of the Fed's monetary policy are to promote maximum employment, stable prices, and moderate long-term interest rates.

Federal Reserve Chair Jerome Powell told reporters that bank reserves appear to remain abundant, leaving room for the central bank to continue shrinking its balance sheet, a process widely known as quantitative tightening, or QT. There had been speculation ...

Discussions about an optimal size of the Fed’s balance sheet are increasingly at odds with the diverse drivers of how this ledger interacts with a shifting regulatory environment. The Federal Reserve’s messaging about the balance sheet is typically ...

Pressure is building inside the Federal Reserve’s funding network as its balance sheet runoff drags on. According to remarks delivered Thursday by Roberto Perli, who manages the System Open Market Account at the New York Fed, the central bank’s ...

The Federal Reserve can keep reducing its roughly $6.7 trillion balance sheet at a slow pace because banking reserves still remain "abundant," Fed Chair Jerome Powell said Wednesday. Powell noted that the central bank slowed the monthly pace of declines in ...

The Federal Reserve’s balance sheet is an important monetary policy tool. The mainstream tends to focus on interest rate policy, but the balance sheet may have an even bigger impact on the money supply and inflation than interest rate manipulation.

The Federal Reserve uses its balance sheet during severe recessions to influence the longer-term interest rates it doesn’t directly control, such as the 10-year Treasury yield, and consequently, the 30-year fixed-rate mortgage. During the COVID pandemic ...