Fed's Rosengren: Fed should shed bonds soon, keep hiking rates - Reuters

Eren Sengezer FXStreet

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

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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