Atlanta Federal Reserve Bank president Dennis Lockhart said Thursday that increasing purchases of longer term Treasury securities is “certainly an option” for the Federal Reserve in response to rising bond yields, and said the Fed needs to “maintain” the size of its balance sheet as shorter-term assets diminish.

But Lockhart, a voting member of the Fed’s policymaking Federal Open Market Committee, said in a telephone interview with Market News International that there could also be drawbacks to increasing longer-term Treasury purchases. So he said he has not made up his mind yet.

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