March 31, 2017 / 5:53 PM / 8 months ago

Fed could pause rate hikes when it begins to shed bonds - Bullard

NEW YORK (Reuters) - The Federal Reserve could pause interest rate hikes when it begins shedding its bond holdings, a move that would have little effect on financial markets, St. Louis Fed President James Bullard said on Friday.

James Bullard, President of the St. Louis Federal Reserve Bank, speaks during an interview with Reuters in Boston, Massachusetts, U.S. on August 2, 2013. REUTERS/Brian Snyder/File Photo

“It’s a possibility that you’d pause on the rate hike and end the reinvestment program,” Bullard told reporters, adding the Fed could be ready to put out a plan for shrinking its $4.5 trillion balance sheet by the second half of this year. “I think it would have relatively minor effects on the market yields,” he added.

Reporting by Jonathan Spicer; Editing by Chizu Nomiyama

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below