Fed's Harker Says Plan To Start To Shrink Balance Sheet Could Start In September

Philadelphia Fed President Patrick Harker on Wednesday said the September meeting could be a good time for the U.S. central bank to begin the process of shrinking its balance sheet. In an interview with the Financial Times, Harker stressed that no final decision had been made and negative economic data would delay the start of the program. Fed officials agreed earlier this month on details to allow a fixed amount of assets to run off the $4.5 trillion balance sheet every month. The initial cap will be set at $10 billion. The Philadelphia Fed president, who is a voting member of the Fed policy committee, said he advocated a "pause" on rate hikes while the central bank starts to pare its balance sheet.