MNI BRIEF: Evans Supports Quick Move to Slim Fed Balance Sheet

Chicago Federal Reserve President Charles Evans said Thursday he supports moving "relatively quickly" to slim the central bank's balance sheet, and that a rate hike and shift to QT can happen together.

“It’s clearly going to be faster than what we did” the last time, he said on a call with reporters after a speech in Detroit, because markets are strong enough and it's beneficial to reset.

Asset sales aren't a pressing question and wouldn't come into play as an option until the Fed is "well into it," he said. Sales could clean up the composition of the balance sheet between securities such as Treasuries and MBS, he said.

Earlier he said his rate-hike view mirrors the FOMC consensus for the equivalent of seven hikes this year and he's more comfortable with those kinds of moves though he's open to a 50bp increase.