Federal Reserve Chair Jerome Powell said on Wednesday still strong levels of liquidity in the financial system will allow the central bank to press forward with shrinking its balance sheet even as it has begun cutting rates.

One reason for the muted market reaction on a close-to-close basis has to do with how asset prices moved in the days leading up to the Fed decision, said Sonu Varghese, global mac

In the end, the Fed decided to go big. The Federal Reserve lowered its key interest rate by a hefty half percentage point Wednesday, moving ahead with its first rate cut in four years and cheering markets that expected an emphatic move amid a softening jobs picture.

An imminent shuttering of QT would represent a major shift in the outlook for the central bank balance sheet. A survey of major banks from the New York Fed in July found firms predicting QT’s end in April of next year, as Fed officials have signaled they saw ample room to continue it.

Federal Reserve Chair Jerome H. Powell called the U.S. economy “strong overall” in a news conference on Sept. 18.

The Federal Reserve's expected to cut rates this week, but will it make a difference to Americans? Here's what you need to know about a Fed rate cut.