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FILE PHOTO: Cleveland Fed President Loretta Mester takes part in a panel convened to speak about the health of the U.S. economy in New York November 18, 2015. REUTERS/Lucas Jackson
CINCINNATI (Reuters) – Cleveland Fed President Loretta Mester on Tuesday said she has not seen evidence that the Federal Reserve’s shrinking balance sheet has caused disruption in financial markets.
Mester told a Financial Executives International event in Cincinnati that the reduction of the trillions of dollars of bonds the Fed bought during the financial crisis has been gradual. Some investors see the policy rollback hurting demand for some financial assets.
Mester’s remarks came after a speech during which the policymaker said the Fed will chart plans to end the balance sheet runoff “at coming meetings” to help the central bank meet its policy objectives.
Reporting by Trevor Hunnicutt; Editing by Sandra Maler
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