Fed bond holdings would be reduced gradually

Frankfurt, Germany • A top U.S. Federal Reserve official says the central bank would likely move in a measured way after it decides to reduce its large bond holdings. San Francisco Federal Reserve President John Williams said there was a case to be made for moving slowly since reducing the bond holdings would lead to higher longer-term rates even as short-term rates are also being raised. “As we do both of these, we’re going to see a tightening of financial conditions happening in two different ...

Share this post