DUBLIN May 12 The U.S. Federal Reserve could
start to wind down its balance sheet gradually to get back to a
normal size in three to four years, Chicago Federal Reserve Bank
President Charles Evans said on Friday.
Evans told a conference in Dublin that the Fed will soon
need to start thinking about trimming its 4.5 trillion dollar
balance sheet, and could adopt monthly trimming towards an end
point that would likely remain above 800 billion dollars.
"It would be reasonable to have an amount that you would
take out of the balance sheet each month that would be digestble
for the Treasury," said Evans.
"Making sure that the path of the balance down is gradual
but sufficient to get to a more normal level before too long,
say within three to four years."
(Reporting by Padraic Halpin and John Geddie; Editing by Hugh