NEW YORK (Reuters) – Now that the U.S. economy is stronger, Federal Reserve officials should reduce the U.S. central bank’s bond portfolio as quickly as possible without hurting financial markets, the Federal Reserve said on Wednesday. Cleveland Fed President Loretta Mester.
Mester said he wants the Fed to consider using higher amortization limits when reducing its balance sheet, and that he does not want to rule out the possibility of actively selling its assets, although he stressed that such decisions would be made based on the state of the economy.
“I would like to reduce it…as soon as possible, on the condition that it is not disruptive to financial markets,” Mester said during a virtual interview with the Wall Street Journal.
(Reporting by Jonnelle Mars)
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