Trump's remarks came a day before the Fed was set to announce its next decision on interest rates.Politicsread more
In a tweet, Trump said that he and Xi "had a very good telephone conversation," and that "our respective teams will begin talks prior to our meeting."Politicsread more
Stocks in Asia rose in Wednesday afternoon trade following positive developments overnight on the U.S.-China trade front.Asia Marketsread more
Sen. Josh Hawley, a well-known tech critic, is introducing legislation that would remove the immunity big technology companies receive for user-posted content under Section...Technologyread more
In its new "Future Skills" report, LinkedIn has identified what it calls the 10 "rising skills" of the future and the jobs associated with them.Get Aheadread more
Democratic Rep. Maxine Waters on Tuesday requested that Facebook pause its development of Libra, an upcoming cryptocurrency that the company plans to release in 2020.Technologyread more
Zuckerberg fell out of Glassdoor's top 20 CEO ranking for the first time, although his employee approval rate remains high.Technologyread more
Signs of companies moving out of Hong Kong have emerged, members of the business community told CNBC following massive protests in the city. But one analyst said Hong Kong's...China Politicsread more
Tensions between China and the U.S. are threatening to slow global trade further, threatening some Asian economies.Asia Economyread more
U.S. President Donald Trump officially kicked off his reelection campaign Tuesday at a Florida rally where he exhorted thousands of rollicking supporters to keep advancing his...Politicsread more
The fashion industry is currently swept up in a storm of nostalgia. Riding on this throwback wave, Italian heritage brand Fila and American sweatshirt producer Champion are...Apparelread more
The Federal Reserve is close to a timetable on when it will stop reducing the amount of bonds it is holding on its balance sheet, Chairman Jerome Powell said Wednesday.
Determining the ultimate size and composition of the fixed income portfolio has been a key concern for investors nervous about how much further the Fed will tighten monetary policy. The central bank bought the bonds during and after the financial crisis in an effort to lower long-term interest rates and stimulate the economy, so reducing the size of the balance sheet has raised fears about whether it will have the opposite effect.
"We're close to agreeing on a plan which would light then way to the end of the process," Powell said during testimony before the House Financial Services Committee.
The Fed is reducing the bond holdings by allowing a maximum of $50 billion in proceeds to roll off each month and reinvesting the rest.
Powell added that he expects the reduction to end "sometime later this year."
Since the process began in October 2017, the amount of Treasurys and mortgage-backed securities the Fed holds has been reduced by about $448 billion to $3.8 trillion. At the same time, the amount of bank reserves has contracted from $2.8 trillion to $1.6 trillion.
In Senate testimony Tuesday, Powell said market estimates of around $1 trillion for bank reserves, plus some buffer, were probably accurate for when the reduction would end. While the numbers aren't directly related, the market has come to tie them together. That would coincide with a wrap-up by around the end of 2019.
Powell said he would expect the Fed to make a decision shortly that will be announced to the public.
"We actually don't know what the equilibrium demand will be. We're going to have to find it over time," he said. "My guess is we'll be announcing something fairly soon."
He noted market pressures have contributed to the balance sheet calculus.
"I think the markets became much more sensitive to these issues," Powell said.
On a related matter, he said the Fed also is not considering raising its inflation target.
The central bank considers 2 percent a healthy level for inflation but has fallen short of that target through much of the recovery. One alternative floated to generating some inflation would be for the Fed to increase its target, which could cause a rise in expectations.
"We are not looking at a higher inflation target, full stop," Powell said, adding that the Fed is examining alternatives to "more credibly achieve" its target.