The Federal Reserve lowered the upper bound of the federal funds rate to 4.00%, down 25 basis points from 4.25% and in line with expectations. According to the FOMC, balance sheet runoff will cease on December 1. Starting then, all principal payments from maturing Treasury securities will be rolled over at auction, and all principal payments from agency debt and MBS will be reinvested into short-term Treasury bills. https://t.co/w5nQ5YkpIh ...

Our long stated plan is to stop balance sheet runoff when reserves are somewhat above the level we judge consistent with ample reserves conditions. We may approach that point in coming months, and we are closely monitoring a wide range of indicators to inform this decision. Some signs have begun to emerge that liquidity conditions are gradually tightening, including a general firming of repo rates, along with more noticeable but temporary pressures on selected dates.The committee's plans lay out a deliberat ...