St. Louis Fed President Bullard Says Balance Sheet Growth Raises Exit Concern

Federal Reserve Bank of St. Louis President James Bullard said central bank stimulus has been ramped up this year with the decision to increase outright bond purchases to $85 billion a month and that a growing balance sheet could be complicated to unwind.

Earlier this week, Bullard predicted that U.S. growth will accelerate to 3.2 percent in the coming year, allowing the Federal Open Market Committee to slow its current bond purchase rate of $85 billion a month. Policy makers have pushed the benchmark interest rate close to zero and expanded Fed assets to a record exceeding $3 trillion to fuel growth and reduce 7.9 percent unemployment.

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