Reuters

(Reuters)

Kocherlakota: Big Fed Balance Sheet Could be New Norm

Politics Reuters

The Federal Reserve does not need to trim its very large balance sheet to be able to raise rates, and indeed a large balance sheet could be the new norm for the U.S. central bank in the future, a top Fed official said on Tuesday.

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Minneapolis Fed President Narayana Kocherlakota, who wants to wait until the second half of next year before raising rates, also told the Bismarck-Mandan Chamber of Commerce that the Fed will be able to start hiking rates as fear and uncertainty ebb from the "psyche" of U.S. consumers and businesses.