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Fed will 'easily' be able to tighten policy when it needs: Evans
September 26, 2012 / 6:06 PM / 5 years ago

Fed will 'easily' be able to tighten policy when it needs: Evans

HAMMOND, Ind., Sept 26 (Reuters) - Chicago Federal Reserve Bank President Charles Evans, a big supporter of the U.S. central bank’s latest bond-purchasing program to boost the economy, said on Tuesday he expects no trouble when it is time to reverse course.

Noting that it will be several years before the Fed will likely move to raise interest rates, Evans said rate increases will come in the context of robust economic growth, and it will likely take some time for the Fed to bring its balance sheet -- now near $3 trillion, and likely much bigger by the time the Fed begins to tighten policy -- back down to more normal levels.

“We are going to be working through this for quite a long period of time just to unwind our balance sheet,” Evans said after a speech here. “I think we will easily be able to tighten policy appropriately during that time.”

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