The Federal Reserve Bank of New York has indicated that it will take longer than expected to reduce its holdings of securities, a process known as balance sheet normalization. This decision comes as the central bank aims to unwind the massive stimulus measures put in place during the financial crisis.
The New York Fed, which carries out open market operations on behalf of the Federal Reserve System, stated that it will slow down the pace of reducing its balance sheet. This move reflects the cautious approach taken by the central bank amid uncertainties in the economic outlook.
