Reducing the Fed’s balance sheet needs to be done neither too fast nor too slowly, Federal Reserve Bank of Atlanta president Dennis P. Lockhart said yesterday, adding that he backs interest rates remaining low for an “extended period.”

“A bit like Goldilocks’ porridge, the exit or unwinding process needs to be — in my view — not too fast, not too slow, but just right,” Lockhart told the Rotary Club of Atlanta, according to prepared text of the speech released by the Fed.

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