Watch Out: The FED Minutes Will Be Published Shortly – Here’s the Time and What You Need to Know

Minutes from the Fed's September meeting may indicate that officials are beginning to consider ending the balance sheet reduction plan.

The Fed cut interest rates by 25 basis points at its last meeting. The minutes of that meeting will be released today at 10:00 PM (UTC+3).

The Fed, which reversed the expansionary policies implemented during the pandemic, has been shrinking its balance sheet for a long time, reducing market liquidity. However, according to Citi economists, recent trends in interest rate markets indicate that financing conditions are already tightening. This suggests that the Fed's balance sheet size may be approaching expected levels.

Citi analysts included the following statements in their report:

“As liquidity has diminished, the volatility of short-term interest rates has increased. This may have led officials to at least discuss potentially halting the balance sheet reduction process eventually.”