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Fed’s Evans: Can start balance sheet reduction and raise rates at the same meeting

Chicago Fed President Charles Evans said on Thursday that the Fed can begin its balance sheet reduction and raise interest rates in the same meeting, reported Reuters.

The risk of slowing the economy into recession isn’t high, Evans said. The Fed won’t need asset sales until it is well into its balance sheet reduction.

Evans added but may need a “cleanup operation” to remove mortgage-backed securities.

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