Fed's Rosengren: Fed should shed bonds soon, keep hiking rates - Reuters
|Boston Fed President Rosengren (non-voter, hawkish) is crossing the wires, via Reuters, suggesting that the U.S. Federal Reserve should begin shedding its bond holdings soon but do so in a very gradual way that has little effect on its planned interest rate hikes.
Key quotes (via Reuters):
- Backs shrinking bond portfolio 'earlier' and very gradually
- Fed should shed bonds 'relatively soon' with little effect on rate hikes
- Fed should first shed 'only small percentage' of maturing bonds
- Portfolio reduction should maintain policy accommodation, reinforce primacy of rates tool
- Labor market at 'full employment'; inflation around 2 pct goal
- 'quite likely' asset purchases necessary in future economic downturns
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