Fed halts bond sales as Bank of England faces pressure to do the same

Group 1 - The Federal Reserve has decided to halt its bond-selling program and has cut its Federal Funds Rate from 4.25% to 4% due to concerns over the weakening jobs market in the US [1][2] - The Federal Open Market Committee (FOMC) announced it would stop its balance sheet run-off, indicating elevated uncertainty about the economic outlook and increased downside risks to employment [2] - The Bank of England is under pressure to follow the Fed's lead in halting its active selling of UK bonds, which has been criticized for increasing government borrowing costs [3][6] Group 2 - During the pandemic, central banks engaged in quantitative easing by purchasing large amounts of bonds to support financial markets, which has now shifted to quantitative tightening [4] - The Fed's balance sheet has decreased from nearly $9 trillion in 2022 to approximately $6.6 trillion today as it allows bond purchases to run off [5] - The Bank of England's roadmap for slowing its bond sales program may be influenced by the Fed's recent decision, potentially leading to a halt in its bond sales by 2026 [6][7]