Free Trial

MNI BRIEF: Bullard Wants Fed Asset Runoff Shortly Post Liftoff

The Federal Reserve should begin allowing its balance sheet to gradually shrink by capping the reinvestment of maturing securities soon after it starts raising interest rates this year, St. Louis Fed President James Bullard told reporters Thursday.

“It would make a lot of sense to allow the balance sheet runoff soon after the first rate increase,” Bullard said during a press briefing. “Exactly how that would be done has yet to be determined. We want to take some of the same playbook we used last time."

Most Fed officials see three interest rate hikes this year, they said after their December meeting.

MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.