Federal Reserve Board Chair Janet Yellen said Wednesday that although the timing of balance sheet normalization beginning “doesn’t matter a great deal,” she would like to see it start “relatively soon.”

Answering a question during testimony before the House Financial Services Committee, Yellen said no decision has been made about whether interest rates would be raised at the same as balance sheet reduction.

She later said she expects the balance sheet would be down to “normal” levels around 2022.

As for her possible renomination and whether she is “open” to serving another four years as chair, Yellen said, “I intend to serve out my term” and “haven’t had to give further thought” to the possibility of another term.

Federal Reserve Chair Janet Yellen.
Federal Reserve Chair Janet Yellen. Bloomberg News

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