Federal Reserve mouthpiece Nick Timiraos said the Fed's January meeting notes showed that officials discussed whether to slow or pause the reduction of its nearly $6.80 trillion portfolio at last month's meeting, and they face the complexities of raising the federal debt ceiling in the coming months. Developments related to the debt ceiling could lead to large swings in the Fed's liabilities. The process of shrinking the balance sheet will eventually deplete the reserves of the banking system, and Fed officials are not sure how long the process will last. How the Treasury will manage the currency market volatility caused by its cash balance could complicate the Fed's ability to determine the correct balance of reserves. As a result, officials concluded at the January meeting that "it may be appropriate to consider pausing or slowing the reduction of the balance sheet until the debt ceiling issue is resolved," according to meeting notes released on Wednesday.