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TOKYO, May 26 (Reuters) - St. Louis Federal Reserve President James Bullard said on Friday that he sees minimal impact on long-term bond yields from reductions in the Fed's balance sheet, which he hopes will start in the second half of this year.
Bullard also said it was good to cap the amount of mortgage-backed securities allowed to run off the Fed's balance sheet, but he was indifferent to what the size of the cap should be.
Bullard spoke to reporters after giving a speech at Keio University. (Reporting by Minami Funakoshi and Stanley White; Editing by Jacqueline Wong)