Current balance sheet is > 4 trillion

The comment does not put a timetable on the action of course. The Fed has not addressed when they would stop the reinvestment of maturing bonds on their balance sheet. Currently, if a bond matures, they are replacing that bond with another purchase - keeping the balance sheet constant.

Other comments from Fischer:

  • There in no plan to stay to a deterministic path of rate hikes once liftoff is started.
  • fed won't pre-commit to rate path after liftoff
  • we are not seeing major examples of excessive risk-taking
  • no need to telegraph every fed action
  • fed needs to shrink the balance sheet
  • fed should not tighten at every meeting as shrinking balance sheet will slow stimulus
  • Does not see emphasis on June instead of September (PS there is also a July meeting but....)
  • Fed must be flexible on when it is to hike

Other comments from Nakaso:

  • Wages will pick up in the broader economy
  • The BOJ will give staff the first pay raise in 20 years.
  • Premature discuss any exit operation in Japan

Other comments from Constancio:

  • Says stock of bonds for ECB QE totals 4 trillion. That is more than enough.
  • ECB to find other stimulus if bonds in short supply