Federal Reserve Bank of Chicago President Charles Evans said he supported the central bank reducing its $4.5 trillion balance sheet by September, but cautioned on raising rates again by year-end, according to MarketWatch.
In an interview with reporters Wednesday, Evans, who is a voting member of the Federal Open Market Committee, added that he does not expect any big market reaction from the Fed paring its bond holdings, MarketWatch reported. He said the move has been well-projected.
Evans also said inflation, which is trending below the Fed's 2% annual target, would need to rise before he could support raising interest rates again this year, according to MarketWatch.
The FOMC's next policy meeting is Sept. 19-20.