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Fed could pause rate hikes when it begins to shed bonds: Bullard
March 31, 2017 / 4:39 PM / in 8 months

Fed could pause rate hikes when it begins to shed bonds: Bullard

NEW YORK (Reuters) - The Federal Reserve could pause interest rate hikes when it begins shedding its bond holdings, a move that would have little effect on financial markets, St. Louis Fed President James Bullard said on Friday.

St. Louis Fed President James Bullard speaks about the U.S. economy during an interview in New York February 26, 2015. REUTERS/Lucas Jackson

“It’s a possibility that you’d pause on the rate hike and end the reinvestment program,” Bullard told reporters, adding the Fed could be ready to put out a plan for shrinking its $4.5 trillion balance sheet by the second half of this year. “I think it would have relatively minor effects on the market yields,” he added.

Reporting by Jonathan Spicer; Editing by Chizu Nomiyama

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