FOMC has 'strongly differing views' about how to proceed in December, says Fed Chair Powell

Monetary Policy Stance - The Fed acknowledges a challenging situation with upside risks to inflation and downside risks to employment, requiring a balanced approach [1][2] - The Fed took a step toward a more neutral policy stance, considering increased downside risks to employment [2] - Future policy decisions will be based on incoming data, the evolving outlook, and the balance of risks, with no pre-set course [3][4] Balance Sheet Normalization - The Fed decided to conclude the reduction of aggregate securities holdings as of December 1 [4] - Over three and a half years, the Fed's securities holdings have declined by $22 trillion [6] - As a share of nominal GDP, the Fed's balance sheet has fallen from 35% to about 21% [6] - In December, the Fed will hold the size of its balance sheet steady while reserve balances continue to move gradually lower [7] - The Fed will continue to allow agency securities to run off and reinvest the proceeds in Treasury bills [7] Dual Mandate - The Fed is committed to supporting maximum employment, bringing inflation sustainably to the 2% goal, and keeping longer-term inflation expectations well anchored [8] - The Fed understands its actions affect communities, families, and businesses across the country and is dedicated to achieving its maximum employment and price stability goals [9]