Mark W Olson: Update on the U.S. economy and fiscal outlook Remarks by Mark W Olson, Member of the Board of Governors of the US Federal Reserve System, at the Albers School of Business and Economics, Executive Speakers Series, Seattle University, Seattle, 13 October 2005. Governor presented identical remarks at the Fraser Institute Roundtable Luncheon, Vancouver, Canada, on 12 October 2005.
If the policy rate was not raised there would be no additional sales. There is logic to selling assets faster when the policy rate rises. If the economy is growing then market demand for both risk and duration is also likely to expand. So selling assets is likely to be less disruptive.