The Federal Reserve has not yet determined what the long-term size of the balance sheet should be.
It said the Fed chief Janet Yellen before the house of representatives on Wednesday, according to a prescribed speech, ” reports Bloomberg News.
The balance sheet should be larger than before the crisis, but less than it is now. A normal level should be achieved sometime around 2022.
”We have tried to be very methodical to inform the public and the markets about how we are going to do this. We have not heard any specific concern or seen any specific marknadsreaktion,” she said.
On the question of whether she would accept a new term of office, she said that it is not a question which had been current hitherto, and that, apparently is something she would discuss with the president.
She also said that this very well could be the last time she sets out for the monetary policy before the congress.
Her term as Fed chief expires in February.
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