(Reuters) - The Federal Reserve's previous experience with reducing its balance sheet will be a "useful guide" for assessing when the central bank should stop that process this time, the head of the New York Fed's open markets account operations said on Thursday.
New York Fed System Open Market Account Manager pro tem Patricia Zobel, addressing key elements of the Fed's current balance sheet reduction effort begun in June, also said at a conference hosted by the Cato Institute that she expects key shifts being observed in money markets to lead to smaller overnight reverse repo balances over time.
