St Louis Fed President James Bullard speaking in Tokyo

  • See marginal impact on long-term yields from Fed balance sheet reduction
  • Looking forward to starting Federal Reserve balance sheet reduction in second half of this year
  • We are monitoring subprime auto and student loans but they are not near danger levels
  • Good to cap the amount of mortgage-backed securities allowed to run off balance sheet

Headlines via Reuters

And, Mr. B with more advice for the Bank of Japan:

  • Prudent for BOJ to lay out an exit strategy