Fed Intensifies Balance-Sheet Discussions With Market Players
- Talks aimed at gauging market impact of balance-sheet moves
- Consultations widened to include investment managers
Fed’s Kaplan Says Three Rate Hikes are 'a Good Baseline'
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Federal Reserve staff, widening their outreach to investors in anticipation of a critical turning point in monetary policy, are seeking bond fund manager feedback on how the central bank should tailor and communicate its exit from record holdings of Treasuries and mortgage-backed securities.
Fed officials are intent on shrinking their crisis-era $4.48 trillion balance sheet in a way that isn’t disruptive and doesn’t usurp the federal funds rate as the main policy tool.