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)
