Feds Mester: Comfortable slowing or stopping B/S rolloffs in 2019

Author: Greg Michalowski | Category: Central Banks

Answers questiions after speech in Delaware

  • comfortable slowing or stopping balance sheet rolloff in 2019
  • If she was making decisions on her own, she would favor slowing reinvestment of Feds maturing securities
  • favors balance sheet being primarily treasuries. Favors shorter-term treasury's
  • Fed would want to communicate balance sheet plans well in advance
  • Neutral interest rate is 3%
  • Flexible inflation target works pretty well
Mester is more of a hawk on the Fed.  She has come back in line with the other members, but cautiously.
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