Speaking at the Bard College Conference
Uncertainty around shedding bonds could spark market volatility
Shrinking balance sheet should be an autopilot process
There will likely be a trade off between shrinking the portfolio and rate hikes
Is worried about deliberately overshooting the inflation goal and overheating labour market
Backs reducing bond portfolio this year
The Fed is on watch from any volatility from reducing their balance sheet but it really should be a smooth process.
