Loretta Meister, chairman of the Cleveland Federal Reserve, said Tuesday that she had seen no evidence that the shrinking balance sheet of the Federal Reserve had disrupted financial markets.
At an international event for financial executives in Cincinnati, Meester said the decline in the trillions of dollars of bonds purchased by the Federal Reserve during the financial crisis was gradual. Some investors argue that the policy rollback undermines demand for certain financial assets.
After a speech by Meester, policymakers said the Fed would develop a plan to end balance sheet runoff "at an upcoming meeting" to help the central bank achieve its policy objectives.
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