Core Viewpoint - The Federal Reserve Chairman Powell indicated that the Fed will eventually need to expand its balance sheet again after announcing plans to stop reducing it, emphasizing the need for increased reserves to support the banking system and economic growth [1] Group 1 - The Federal Reserve has announced a halt to the reduction of its balance sheet [1] - Powell stated that the Fed will have to increase its asset holdings in the future to maintain sufficient liquidity in the financial system and control interest rates [1] - He highlighted that reserves need to grow in response to the expansion of the banking system and the economy [1]