That is, while agreeing that policy should remain accommodative, I voted against promising “exceptionally low rates for an extended period.” As the recovery continued into the spring, I judged that the Federal Reserve should gradually shrink its enlarged balance sheet with minimal market disruption by disposing of mortgage-backed securities that were trading in the market at a premium.
Thus, I voted against replacing maturing MBSs with similar or other securities. Finally, in the fall, I questioned the long-term benefits of further easing monetary policy during a recovery – and I voted against QE2. Today, my view has not changed. The FOMC should gradually allow its $ trillion balance sheet to shrink toward its pre-crisis level of $ trillion.