Institutions: The Fed can pause quantitative tightening and then restart

On March 17, Wall Street strategists will pay close attention to any hints that the Federal Reserve plans to pause or further slow the pace of balance sheet reduction. The minutes of the January meeting showed that policymakers discussed the potential need to pause or slow the pace of balance sheet reduction until lawmakers reached an agreement on the government's debt ceiling. Blake Gwen, head of U.S. rates strategy at Royal Bank of Canada, said: "Since the Fed has talked about it, why not just do it? Because they can pause quantitative tightening and then restart it. ”

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