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MNI BRIEF: Schmid Says Fed Should Have Left QT At Faster Pace

(MNI) WASHINGTON

Kansas City Fed President Jeffrey Schmid on Tuesday said he would have preferred the central bank had not announced plans to begin slowing the speed of its balance sheet drawdown.

"I didn't really think we should have slowed the runoff when there's about USD3 to USD3.5 trillion dollars of reserves in the system today. I think there was room to continue to runoff like we were doing it," Schmid said in Q&A at an event in Omaha. "I think there's a lean a little bit to more abundant reserves in the system."

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Kansas City Fed President Jeffrey Schmid on Tuesday said he would have preferred the central bank had not announced plans to begin slowing the speed of its balance sheet drawdown.

"I didn't really think we should have slowed the runoff when there's about USD3 to USD3.5 trillion dollars of reserves in the system today. I think there was room to continue to runoff like we were doing it," Schmid said in Q&A at an event in Omaha. "I think there's a lean a little bit to more abundant reserves in the system."

Keep reading...Show less