Harker on the Fed's balance sheet

  • It's possible we could make balance sheet changes after one hike
  • Sees moderate pace of slowing balance-sheet reinvestment
  • Should be willing to adjust balance sheet runoff as needed
  • Runoff will be designed to minimize market disruption

This is more confirmation that the Fed has no intention of halting reinvestment. Rather, the will just reinvest less. That makes for a runoff that will take decades.