Jan 26 (Reuters) - Federal Reserve officials expect they will begin reducing the central bank's balance sheet after they start raising interest rates, according to principles released by the Fed on Wednesday.
Members of the Fed's Open Market Committee also agreed they would like to offload the Fed's holdings "primarily" by adjusting how much of the principal payments received from portfolio securities are reinvested, the Fed said.
"The Committee is prepared to adjust any of the details of its approach to reducing the size of the balance sheet in light of economic and financial developments," the Fed said in a statement. (Reporting by Jonnelle Marte Editing by Chris Reese)
