Fed’s Bostic: Start of Fed balance sheet drawdown going well

Dhwani Mehta FXStreet

The Wall Street Journal (WSJ) offers more comments from the Atlanta Fed President Raphael Bostic’s speech:

The start to central bank balance sheet reduction is going well, in part because the economy is in a good place to deal with the shift in monetary policy.

"While much is uncertain about this unprecedented policy unwinding, there are good reasons to think that the effects of a gradual and predictable ramping down of the balance sheet will be smaller than the effects measured as the balance sheet expanded"

"Although I don't expect financial market conditions to be significantly affected in the coming months by balance-sheet reductions themselves, I, along with my colleagues, will obviously be monitoring financial markets for any change in financial conditions that could affect the macroeconomy"

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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