Fed's Williams Sees Balance-Sheet Shrinking Taking Five Years
- San Francisco Fed chief doesn’t see CRE as significant risk
- Repeats two more rate increases in 2017 his baseline view
Fed Favors Plan to Shrink Balance Sheet Later in 2017
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Federal Reserve Bank of San Francisco President John Williams said it may take the U.S. central bank around five years to shrink its balance sheet to a more normal size once that process gets underway.
Speaking with reporters Thursday in Frankfurt, Williams said it made sense to begin the roll-off toward the end of 2017. The length of time it takes would depend on how far officials want to trim a balance sheet swollen to $4.5 trillion by three rounds of asset purchases designed to protect the U.S. economy from the financial crisis.