Fed’s Brainard: If econ data holds up, would be appropriate to begin shrinking b/sheet soon

Lael Brainard, a member of the Board of Governors of the Federal Reserve System, is crossing the wires, via Reuters, saying that if the economic data holds up, it would be appropriate to begin shrinking the balance sheet soon.

Key quotes (via Reuters):

• To assess inflation before deciding on further rate hikes once b/sheet reduction is underway
• Normalization of rates ‘well under way’
• Urges moving cautiously on rate hikes to help boost inflation back to target
• Pace, timing & approach of b/sheet run off by major central banks may have spillover effects on FX rates, financial conditions