September 7, 2017 / 5:03 PM / a year ago

Fed's Mester says wants to 'set it and forget it' on balance sheet

(Reuters) - Once the Federal Reserve starts its years-long plan to shrink its balance sheet, the U.S. central bank will not be reassessing it each meeting as it does its interest-rate decisions, Cleveland Fed President Loretta Mester said on Thursday.

Loretta Mester, president of the Federal Reserve Bank of Cleveland, speaks during an interview in Manhattan, New York, U.S., August 16, 2017. REUTERS/Shannon Stapleton

“We wanted to have a plan that we really could say, set it and forget it,” she said in Pittburgh.

The Fed’s plan to gradually raise interest rates also “allows us to be very consistent in our strategy over time,” but leaves room for reacting to variations in economic data, she said.

Reporting by Ann Saphir; Editing by Chizu Nomiyama

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