Fed’s Waller Sees No Evidence Reserves Are Nearing ‘Ample Level’

Federal Reserve Governor Christopher Waller said the banking system still has enough reserves for the central bank to keep its monthly runoff of Treasury securities unchanged.

Policymakers agreed this week to shrink the Fed’s balance sheet at a slower pace. Beginning in April, the Fed will lower — to $5 billion from $25 billion — the monthly cap for Treasuries on its balance sheet that it allows to mature without being reinvested. Officials left unchanged the cap on the rolloff of mortgage-backed securities at $35 billion.