🔹The Federal Reserve is reportedly preparing to pause its balance sheet reduction as early as Wednesday, following mounting strain in overnight lending markets.
🔹 Liquidity pressures are intensifying, with repo rates surging and banks increasingly turning to the Fed’s emergency lending tools.
🔹 Fed Chair Jerome Powell signaled that further tightening could risk market instability.
🔹While the decision may ease short-term financial stress, it could also fuel new tensions between the White House and the Fed over control of the economy.
— Axios
