Fed's Powell: No call yet on when balance sheet would shrink

Federal Reserve Chairman Jerome Powell delivers remarks on a screen at the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., December 15, 2021. - Reuters

Washington: Federal Reserve Chair Jerome Powell on Wednesday said that while policymakers have decided on a swifter end to the asset purchases that have been padding its easy-money policy throughout the pandemic, they have made no decision yet on whether to start shrinking the central bank's balance sheet.

That issue will be among the many - including whether to raise interest rates to combat stiff inflation - that the Fed will discuss in its coming meetings, Powell said at a news conference after the central bank's latest policy meeting at which it decided to double the pace of its bond purchase "tapering" exercise.