Fed's Mester Favors Starting to Shrink Balance Sheet This Year
- Cleveland Fed chief doesn’t see hike at every FOMC meeting
- Expects the economy to expand ‘somewhat above’ 2% trend growth
Fed's Evans Says Two Rate Hikes in 2017 May Be Right
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Federal Reserve Bank of Cleveland President Loretta Mester called for the U.S. central bank to continue with gradual interest-rate increases and begin shrinking its $4.5 trillion balance sheet this year if the economy continues to improve.
“If economic conditions evolve as I anticipate, I would be comfortable changing our reinvestment policy this year,” Mester said, according to the text of a speech she is scheduled to deliver Tuesday in Richmond, Virginia. “Ending reinvestments is a first step toward reducing the size of the balance sheet and returning its composition to primarily Treasury securities over time.”