Some of the Fed's decision makers expect to cut back on the balance sheet later
With the US Federal Reserve (Federal Reserve / FED) discussing how to reduce the large balance sheet that has led to large-scale debt borrowing over the years, some policymakers have publicly called for action, and two officials said that later this year, Table scale.
John Williams, president of the Federal Reserve Bank of San Francisco, told Wall Street Journal on Thursday that he hopes to cut back on the balance of $ 4.5 trillion (trillion) in the Fed by the end of the year, when the US short-term interest rate is higher than 1% The
Earlier this week, Loretta Mester, president of the Federal Reserve Bank of Cleveland, said she was in favor of taking steps to reduce the balance sheet this year.
Mestre's point of view often does not belong to the mainstream view of the Fed, she had twice objected last year to support tightening policy. Williams was considered close to the Federal Reserve Chairman YE Lun, Ye Lun served as president of the San Francisco Fed.
So the comments from the two can not see the possible path of the Fed.
"As with the federal funds rate, the balance sheet will also depend on the data," said Lou Brien, an analyst at DRW Holdings. "I think they want to mention this idea again and again, The turbulence will be smaller. "
Federal Reserve Chairman Yelen himself has not yet shown any sense of urgency. The Fed expressed the hope that only the gradual removal of the loose, the other to reduce the balance sheet, rather than the Fed's current practice as to expand the scale of assets and liabilities, or will push up long-term borrowing costs.
In a press conference that announced a two-month increase in short-term interest rates in three months last week, Yelun said he discussed with the Fed colleagues the final table, but did not reach any decision.
New York Federal Reserve Bank's latest survey results show that Wall Street banks expect the Fed's debt purchase policy by the middle of 2018 there will be no change.
However, Goldman Sachs economists in the recent report is expected, the Fed will be announced in December, a plan to reduce debt.
John Williams, president of the Federal Reserve Bank of San Francisco, told Wall Street Journal on Thursday that he hopes to cut back on the balance of $ 4.5 trillion (trillion) in the Fed by the end of the year, when the US short-term interest rate is higher than 1% The
Earlier this week, Loretta Mester, president of the Federal Reserve Bank of Cleveland, said she was in favor of taking steps to reduce the balance sheet this year.
Mestre's point of view often does not belong to the mainstream view of the Fed, she had twice objected last year to support tightening policy. Williams was considered close to the Federal Reserve Chairman YE Lun, Ye Lun served as president of the San Francisco Fed.
So the comments from the two can not see the possible path of the Fed.
"As with the federal funds rate, the balance sheet will also depend on the data," said Lou Brien, an analyst at DRW Holdings. "I think they want to mention this idea again and again, The turbulence will be smaller. "
Federal Reserve Chairman Yelen himself has not yet shown any sense of urgency. The Fed expressed the hope that only the gradual removal of the loose, the other to reduce the balance sheet, rather than the Fed's current practice as to expand the scale of assets and liabilities, or will push up long-term borrowing costs.
In a press conference that announced a two-month increase in short-term interest rates in three months last week, Yelun said he discussed with the Fed colleagues the final table, but did not reach any decision.
New York Federal Reserve Bank's latest survey results show that Wall Street banks expect the Fed's debt purchase policy by the middle of 2018 there will be no change.
However, Goldman Sachs economists in the recent report is expected, the Fed will be announced in December, a plan to reduce debt.