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Cleveland Fed Mester on Balance Sheet Runoff

FED
  • MESTER: SELLING AGENCY MBS DEBT UP TO MONTHLY CAP IS AN OPTION, Bbg
  • RUNOFF TO END WHEN RESERVES ABOVE FED JUDGED AMPLE LEVEL, Bbg
  • FED'S JUDGED LEVEL OF AMPLE RESERVES IS UNCERTAIN, Bbg
  • ANOTHER OPTION IS SETTING MONTHLY FLOOR ON REDUCTIONS, Bbg
  • POTENTIAL SALES DRAWBACK IS REALIZED MARK-TO-MKT LOSSES, Bbg

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