St.Louis Fed chief argues for balance sheet normalisation

St.Louis Fed chief James Bullard argued in favour of getting the ball rolling on balance sheet normalisation in 2017.

"[We] should get going on balance sheet normalisation" Bullard said in an interview with Bloomberg TV.

Ending the reinvestment policy was on the table, not selling assets, he went on to explain.

"I would not fight against another rate hike [in 2017]," Bullard added.

However, he believed rates were more or less where they had to be, going on to add that a 200 or more basis point adjustment just to stay "where we are" on inflation and growth was not necessary.