Fed's Rosengren: Balance sheet likely to grow
|Normalizing Fed's balance sheet to levels seen before the 2008 crisis is not feasible and the central bank's balance sheet is likely to grow again, Federal Reserve Bank of Boston President Rosengren said earlier today while speaking in Hong Kong, according to Reuters.
Key quotes
It may be important for the Fed to increase the share of treasury bills, lower duration of its balance sheet more quickly.
Fed will need to consider when to purchase securities to offset declining reserves as currency grows.
Central banks globally likely to reach rates' lower limit quickly in a recession, making asset buying possible.
Important for the public to become more comfortable with the benefits of fed using its balance sheet.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.