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.
