Citigroup: Waller will cautiously advance the Fed's balance sheet reduction, expecting the bond purchase scale to decrease to $20 billion per month

According to Jin Ten, Citigroup strategists stated that Federal Reserve Chair nominee Waller is likely to adopt a gradual approach to reducing the Federal Reserve's $6.6 trillion asset portfolio to avoid reigniting tensions in the money market. Citigroup expects that policymakers will reduce the pace of asset purchases to about $20 billion per month starting in mid-April and continue this until the end of the year.