Cleveland Federal Reserve Bank president Sandra Pianalto last week said evolving economic circumstances will determine when and how the central bank unwinds its financial rescue efforts that have more than doubled its balance sheet, and that monetary policy makers must not rule out any exit-strategy options.

Answering audience questions following her speech in New York, Pianalto also said that while the current “very accommodative” policy stance is “appropriate” for now, the Fed must be ready either to ease or tighten monetary policy.

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