NEW YORK (Reuters) - It may be time for the Federal Reserve to reassess the intended size of its balance sheet as it has begun allowing its bond holdings to run off since last year, St. Louis Fed President James Bullard said on Wednesday.
The Fed’s balance sheet, currently at about $4.2 trillion, is shrinking at a faster pace as a percentage of the U.S. economy, which continues to expand. Therefore Fed policy-makers should review the size of its balance sheet that they had been striving for before they started normalizing it, Bullard said.
Bullard was speaking to reporters after a speech at a financial conference sponsored by Euromoney.
Reporting by Richard Leong; Editing by Chizu Nomiyama