Fed's Rosengren: Fed should shed bonds soon, keep hiking rates - Reuters

Boston Fed President Rosengren (non-voter, hawkish) is crossing the wires, via Reuters, suggesting that the U.S. Federal Reserve should begin shedding its bond holdings soon but do so in a very gradual way that has little effect on its planned interest rate hikes.

Key quotes (via Reuters):

• Backs shrinking bond portfolio 'earlier' and very gradually
• Fed should shed bonds 'relatively soon' with little effect on rate hikes
• Fed should first shed 'only small percentage' of maturing bonds
• Portfolio reduction should maintain policy accommodation, reinforce primacy of rates tool
• Labor market at 'full employment'; inflation around 2 pct goal
• 'quite likely' asset purchases necessary in future economic downturns