Starting in December, the Federal Reserve will "roll over" maturing Treasury bonds, signifying the formal end of its balance sheet reduction process.

PANews reported on October 30 that the Federal Reserve stated in its latest FOMC statement that, starting December 1, 2024, it will "roll over" the principal of all maturing U.S. Treasury securities. This means that instead of receiving cash upon maturity, the principal will be reinvested in newly issued Treasury securities to maintain the size of its balance sheet. This signifies the formal end of the Fed's two-year balance sheet reduction process, which is seen by the market as a significant signal that monetary policy is shifting from tightening to neutral or even easing.

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Author: PA一线

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