Fed Chair Powell: Reiterates expectations that at the coming meeting will begin balance sheet reduction

Fed Chair Jerome Powell reiterated on Monday his expectations that at the upcoming Fed meeting, the central bank will begin the process of balance sheet reduction, a process to last three years. Monetary quantities are not an important part of the inflation story at this time, Powell noted, saying that having a strong labour market is important and a big focus. The current labour market is much tighter and hotter than before the pandemic, Powell added.