The US Federal Reserve plans to increase the volume of purchases of short-term bonds so that the asset structure better matches the distribution of government bonds with different maturities. Federal Reserve Bank of Dallas President Laurie Logan said this at an event in London. The Fed is currently reducing its assets, estimated at $6.8 trillion, the bulk of which consists of government bonds and mortgage-backed securities. The monthly reduction in the balance sheet is about $60 billion, including a reduction in government bonds by $35 billion. This is achieved by refusing to reinvest funds from the repayment of current securities. Logan stressed that in the long term it is important to maintain a neutral distribution of purchases, but in the medium term, an increase in the share of short-term bonds will allow the Fed to balance its asset portfolio faster. Logan previously worked in asset management at the Federal Reserve Bank of New York. In 2025, she will not vote in the Federal Committee on Open Market Operations (FOMC), but will receive this right in 2026.
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