Fed's Williams: On exit, Fed will sell assets gradually
IRVINE, California (Reuters) - The U.S. Federal Reserve will target a "soft landing" when it comes time to exit its super-easy monetary policy, raising rates and then selling the assets it has accumulated in its bid to push borrowing costs lower, a top Fed official said on Monday.
"We will sell them at a gradual pace," John Williams, president of the San Francisco Federal Reserve Bank, said in response to a question about whether the Fed would "dump" the assets it has accumulated once it needs to tighten policy. Williams was speaking at the University of California, Irvine.
The approach follows a blueprint the Fed has earlier laid out.
"We are looking for that perfect soft landing," Williams said, saying he's optimistic the Fed will be successful. (Reporting by Ann Saphir; Editing by Lisa Shumaker)
- Malaysia Airlines plane missing at sea off Vietnam, presumed crashed |
- China draws 'red line' on North Korea, says won't allow war on peninsula
- Warning shots fired to turn monitors back from Crimea |
- Malaysian plane crashed off Vietnam coast: state media