Fed's Barkin
  • Returning to normal does not require a calamitous drop in economic activity
  • reduction of balance sheet should add to tighter financial conditions
  • amount of money in overnight RRP means Fed is nowhere near the edge of balance sheet low point
  • recent data on economy has been a strong, jobs market seems healthy, as does core retail sales industrial production
  • July inflation report was a better. Have some hope that it will continue to come down