Fed's Dudley says to normalize balance sheet in 'very careful way'

MUMBAI (Reuters) - New York Federal Reserve President William Dudley said on Thursday the U.S. central bank will normalize its balance sheet in a “very careful way”, while leaving “sufficient” excess reserves in the financial system.

Dudley, in a speech in Mumbai, also told the audience not to expect any “dramatic change” in monetary policy in the United States.

The comments largely hewed to his previous stance on the subject and came in answers to questions from the audience after Dudley delivered a speech calling trade protectionism a “dead end”.