WASHINGTON, July 14 (Reuters) – Federal Reserve Chair Kevin Warsh said that any changes in the U.S. central bank’s balance sheet policies would be previewed, explained and debated, and financial markets would have ample advance notice of them.
Warsh told a U.S. House of Representatives Financial Services Committee hearing that his views on the Fed’s large balance sheet are well known but he did not want to prejudge decisions that a new Fed balance sheet task force will make. He said that the Fed’s balance sheet is part of monetary policy and that he wanted the Fed to steer clear of fiscal policy.
“I want to assure you that if there were a change in balance sheet policy, that we would preview it, explain it, debate it, and no changes in balance sheet policy would happen without good advance notice to the likes of this committee and broadly financial market,” Warsh said.
(Reporting by Ann Saphir and David Lawder)
