September 6, 2017 / 12:44 AM / a year ago

Fed's Kaplan sticks to view that balance sheet should shrink

(Reuters) - Hurricane Harvey was a “significant” event that will slow the Texas and perhaps the U.S. economy for a few months, but it is no reason for the Federal Reserve to reconsider a plan to start trimming its $4.5 trillion balance sheet as soon as next month.

“Harvey would not cause me to change my view on the timing” of when the Fed should begin trimming the balance sheet, which should be “as soon as possible,” Dallas Federal Reserve Bank President Robert Kaplan told reporters on Tuesday.

The Fed next meets in two weeks and is expected to announce a plan to begin allowing its bond portfolio to shrink.

Reporting by Ann Saphir; Editing by Sandra Maler

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