Fed's Powell says now was a good time to slow pace of balance sheet drawdown

WASHINGTON, March 19 (Reuters) - Federal Reserve Chairman Jerome Powell said Wednesday that the slowdown in the pace of the central bank's balance sheet makes sense amid some rising signs of tighteness in money market conditions.

"We still think that reserves are abundant," Powell said in a press conference following the latest Federal Open Market Committee meeting, in a signal the central bank still has space to slow its balance sheet drawdown. But with uncertainty over government cash management it's harder to read the market right now so it makes sense to slow the pace of shedding Fed owned bonds, Fed said.