Fed’s Evans sees ‘brisk pace’ for balance sheet runoff

Author of the article: Chicago Federal Reserve President Charles Evans said on Thursday he supports starting to trim the U.S. central bank’s nearly $9 trillion balance sheet “relatively quickly” and favors a “pretty brisk pace” for the coming runoff. Fed Chair Jerome Powell said this week that the central bank will begin paring its balance…
Fed’s Evans sees ‘brisk pace’ for balance sheet runoff

Author of the article:

Chicago Federal Reserve President Charles Evans said on Thursday he supports starting to trim the U.S. central bank’s nearly $9 trillion balance sheet “relatively quickly” and favors a “pretty brisk pace” for the coming runoff.

Fed Chair Jerome Powell said this week that the central bank will begin paring its balance sheet as soon as May, once policymakers have settled on details including how fast and far they expect it to go.

The Fed does not need to pause interest rate hikes while it starts that process, Evans told reporters after speaking to the Detroit Regional Chamber.

He added that the Fed would likely not sell assets until further on, and only then as a “cleanup operation” to remove any remaining mortgage-backed securities. “We ultimately do want to get to a balance sheet that is Treasuries only,” Evans said. (Reporting by Ann Saphir Editing by Paul Simao)

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