Harker on the Fed’s balance sheet
– It’s possible we could make balance sheet changes after one hike
– Sees moderate pace of slowing balance-sheet reinvestment
This is more confirmation that the Fed has no intention of halting reinvestment. Rather, the will just reinvest less. That makes for a runoff that will take decades.
Fed’s Harker: Would prefer to begin shrinking balance sheet after two hikes
ByAdam Button
May 12, 2017