Fed's Brainard: Reductions in balance sheet could come as soon as June after decision made in May

Fed Vice Chair Lael Brainard said on Tuesday that reductions in the size of the Fed's balance sheet could come as soon as June, after a decision is made in May, reported Reuters. The Fed is tightening methodically as well as expeditiously, she commented, echoing recent remarks from Fed Chair Jerome Powell, noting that the Fe will tighten through a series of rate increases. In terms of the pace of rate increases meeting to meeting, the Fed doesn't want to focus on that, she cautioned. Nonetheless, the added, the combined effect will bring policy to a more neutral rate expeditiously later this year, she noted.