Philly Fed Harker Says Balance Sheet Could Start Shrinking in September

Philadelphia Fed President Patrick Harker on Wednesday said the September meeting could be a good time for the U.S. central bank to begin the process of shrinking its balance sheet. In an interview with the Financial Times, Harker stressed that no final decision had been made and negative economic data would delay the start of the program. Fed officials agreed earlier this month on details to allow a fixed amount of assets to run off the $4.5 trillion balance sheet every month. The initial cap will be set at $10 billion. The Philadelphia Fed president, who is a voting member of the Fed policy committee, said he advocated a “pause” on rate hikes while the central bank starts to pare its balance sheet.



via MarketWatch

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza