Powell hints at $1 trillion goal for Fed balance sheet

Proposed reserves buffer is more than enough, Charles Goodhart says

Jerome Powell
Jerome Powell: $1 trillion is a reasonable starting point for where the balance may end up

Federal Reserve chairman Jerome Powell told US lawmakers on February 26 that roughly $1 trillion in reserves could be left on the Fed’s balance sheet once it stops its quantitative easing winddown.

The $1 trillion figure, plus a buffer, is “a reasonable starting point, an estimate, of where [the Fed] might end up”, Powell said in testimony before Congress.

He said the estimated amount of reserves banks need to keep at the Fed has gone up “substantially” due to changing regulatory requirements

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: