Fed members see balance sheet reduction continuing, minutes show

Minutes from the last Federal Reserve meeting read, “Participants generally remarked on the importance of communicating that the Committee’s monetary policy decisions are conditional on the evolution of the economy and the implications for the economic outlook and balance of risks and therefore not on a preset course. Several participants discussed the importance of communicating that the ongoing reduction in the Federal Reserve’s balance sheet could continue for some time even as the Committee reduced its target range for the federal funds rate.”