Governor Lisa Cook said Thursday plans to roll off assets from the Fed's books are still the right choice and markets appear to be functioning well even as volatility has increased.
"This is the right path and and we will continue to see this acting as a complement to interest rate increases," she said in Q&A at a Peterson Institute for International Economics event. "So, we're not just only focused on interest rate increases." (See: MNI INTERVIEW: Fed Would Pause QT, Not Hikes, On Market Turmoil)
"The period we're in now is not like March and April 2020," she added. "The Treasury market is is functioning well. We've seen volatility increase. We've seen depth that is lower, but we see large volumes of trades being executed. So, in that sense the market continues to function well."