Fed Officials to Discuss Winding Down Balance Sheet Reduction at March Meeting

Fed officials to debate balance sheet reduction at March FOMC meeting, looking to manage "endgame" of quantitative tightening (QT)
Officials want to kick off "in-depth discussions" on how to conclude steady balance sheet reduction
Debate expected over how to eventually slow (taper) the QT process as first step
Uncertainty around how much liquidity financial system needs; slowing pace allows Fed time to decide when to fully stop
Goal is to complete QT smoothly, avoiding repeat of past QT disruptions to repo market