(Reuters) – The size of the U.S. central bank’s balance sheet, now more than $7 trillion, is “far” from hitting any limits, San Francisco Federal Reserve Bank President Mary Daly said on Wednesday, noting that there are really only two constraints on its ultimate size.
“One is we can’t be the only maker in the market, because then we start actually influencing things in a way we don’t want to,” Daly said at an event put on by the University of Nevada, Reno. “And the second is the optics of the balance sheet, as people like to call them, the tolerance for people thinking that we are not actually influencing the market pricing across the board because we are too large…but neither of those things right now is binding us.”
(Reporting by Ann Saphir, Editing by Franklin Paul)
