Fed’s Kashkari says he would like balance sheet plan ‘as soon as possible’

Neel Kashkari, president and chief executive officer of the Federal Reserve Bank of Minneapolis.

Minneapolis Federal Reserve Bank President Neel Kashkari on Thursday said he would like to see a detailed plan for how and when the Fed will reduce its $4.5 trillion balance sheet as soon as possible.

“There’s no reason to hold it — there are a lot of policy tradeoffs we have to choose from,” Kashkari told reporters at a Federal Reserve research conference in Washington. “Once we come to consensus on those tradeoffs, I would like us to publish that as soon as possible. I think we would do ourselves a favor by giving the markets as much time as possible to understand it, prepare for it, so there are as few surprises as possible.”

Kashkari was the lone dissenter against the U.S. central bank’s decision last week to raise interest rates, citing the need for further progress on employment and inflation.

The Minneapolis Fed chief has also said the Fed should hold off on further rate increases until it publishes its plan on the balance sheet.

That’s at odds with the majority of his colleagues at the Fed who favor lifting rates well away from zero before altering its current balance sheet policy.