Fed Should Seek “Less Dramatic” Way To Cut Expansion Policy: Barkin

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WASHINGTON, Jun 29 (Reuters) – The Federal Reserve should reduce its expansionary policy as less dramatically as possible when the time comes, Richmond Chairman Thomas Barkin said Tuesday.

“I have a preference for the less dramatic way of getting back to normal,” Barkin said during a webcast interview on MNI Market News.

Barkin added that it has not yet decided whether the Fed should start reducing its purchase of mortgage-backed assets before Treasuries, although he pointed out that being too intricate has its drawbacks.

“I’m open to that,” Barkin said. “I think that, whatever we do, there is also a third criterion, which is simply simplicity. Is it easy to communicate, do people understand? I think there is some inconvenience in trying to be too smart when it comes to moving to the left or the right”.

(Reporting by Lindsay Dunsmuir; edited in Spanish by Carlos Serrano)

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