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George, Esther L. on 2017 May 9 at 11:40

My own view is that the process [of reducing the Fed’s balance sheet] should begin sometime this year by reducing reinvestments in mortgage-backed securities (MBS) and long-term Treasury securities.

The FOMC also must begin to adjust the size and composition of its securities holdings. … My own view is that the process should begin sometime this year by reducing reinvestments in mortgage-backed securities (MBS) and long-term Treasury securities. Once it begins, however, the runoff in the portfolio should be on autopilot and not reconsidered at each subsequent FOMC meeting. Otherwise, the Committee would need to re-evaluate and make adjustments that will potentially complicate monetary policy and provide few benefits to the real economy. George, Esther L.

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