Fed Favors Plan to Start Shrinking Balance Sheet Later in 2017
- Central bankers reiterated outlook for gradual rate increases
- ‘Some participants viewed equity prices as quite high’
Fed Favors Plan to Shrink Balance Sheet Later in 2017
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Most Federal Reserve officials said they backed a policy change that would begin shrinking the central bank’s $4.5 trillion balance sheet later this year, as they reiterated their outlook for gradual interest-rate increases.
“Most participants anticipated that gradual increases in the federal funds rate would continue and judged that a change to the committee’s reinvestment policy would likely be appropriate later this year,” according to minutes of the Federal Open Market Committee’s March 14-15 meeting released Wednesday in Washington.