Federal Reserve Chair Jerome Powell indicated that the central bank's balance sheet reduction plan might conclude in the coming months due to rising overnight financing rates. This development has prompted the Fed to reassess the progress of its quantitative tightening (QT) strategy. Powell also cautioned that if Congress revokes the Interest on Reserves (IOR) mechanism, the Fed could lose effective control over short-term interest rates. Such a scenario might force the Fed to rapidly sell off large quantities of Treasury securities or mortgage-backed securities (MBS), posing a threat to market stability.