NEW YORK (Reuters) - The Federal Reserve could pause interest rate hikes when it begins shedding its bond holdings, a move that would have little effect on financial markets, St. Louis Fed President James Bullard said on Friday.
"It's a possibility that you'd pause on the rate hike and end the reinvestment program," Bullard told reporters, adding the Fed could be ready to put out a plan for shrinking its $4.5 trillion balance sheet by the second half of this year. "I think it would have relatively minor effects on the market yields," he added.
(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)
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