Into the Q&A
It's too early to talk about rate hike timing
- Exact timing will depend on incoming data, fiscal and international issues
- Fed's balance sheet is one reason we have very low rates
- It is appropriate to examine reducing the balance sheet
- Expects Fed to let the balance sheet reduce gradually
- Commercial real estate is certainly something to watch
- Fiscal policy is difficult to predict
- Privatising Freddie and Fannie Mac unlikely to happen quickly
- Freddie and Fannie privatising will not have a dramatic impact on Fed balance sheet
The slippery slope continues for USDJPY and yen pairs. There's nothing here that's moving markets.
