NEW YORK, Nov 28 (Reuters) - New York Federal Reserve
President John Williams said on Monday he doesn't see any issues
with the U.S. central bank's ongoing drawdown of its balance
The reduction of bonds owned by the Fed is working "pretty
much as designed" and there are no signs of a scarcity of bank
reserves that would cause the central bank to alter its current
path, Williams told reporters after a speech to the Economic
Club of New York.
Right now, the Fed is shedding just shy of $100 billion each
month in Treasuries and mortgage-backed securities from its
roughly $8.6 trillion balance sheet, as a companion to its
campaign to hike interest rates.
Both actions are designed to help tighten financial
conditions to slow the economy and moderate high levels of
inflation. Fed officials have given no guidance when they might
stop their drawdowns of the balance sheet, but some analysts
think it could happen next year given what they see as
increasingly scarce levels of bank reserves.
(Reporting by Michael S. Derby; Editing by Paul Simao)