St Louis Fed President James Bullard said Thursday that he is open to revisiting the steady runoff of the balance sheet but didn’t think it was impacting financial markets as some argue. In a press conference after a speech in Little Rock, Arkansas, Bullard that if the balance sheet runoff was impacting bond market as some suggest, then yields would be moving higher instead of the steady decline seen since November. He also said he would have expected some negative market reaction to occur when the program was unveiled in 2017, but that didn’t happen. Bullard, who is a voting member of the Fed’s interest-rate committee this year, said he argued against the December interest rate hike and said he didn’t want the central bank to project any more rate increases.
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