Fed’s Kaplan: Should unwind balance sheet in a way that minimises impact

Comments from Fed’s Kaplan crossing the wires via Bloomberg and Reuters – The Fed should unwind the balance sheet in a way that minimises impact.

The Fed minutes released yesterday showed nearly all policy makers agree to reduce balance sheet later this year.

Key quotes

Fed is still below 2% inflation

Progress of inflation is slow and even

Should remove accommodation patiently

Rates hikes could be more gradual than once a quarter

US close to getting full employment

US can’t grow debt to boost GDP any more