Slowing its balance-sheet runoff means the Fed will buy more Treasuries. But don’t look for any big downdraft in yields.

Federal Reserve governor Christopher Waller said the Fed's decision this week to slow its balance-sheet reduction came too early and will delay the end goal. The Fed has been letting up to $25 billion of Treasury debt on its balance sheet expire without replacement every month.

Federal Reserve Governor Christopher Waller on Friday said he opposed the U.S. central bank's decision this week to slow the pace of reduction of its securities holdings because the level of reserves in the banking system remains abundant.