9  Economic theory suggests that the public’s expectations concerning the time path of the Federal Reserve’s asset holdings – which includes both the ultimate size of those holdings and the length of time that these assets will be retained on the Fed’s balance sheet – influence longer-term yields and the term premiums embedded in those yields today.
This is indeed subject to debate, but the doubts raised are not about whether or not it should be done, but rather about how and when to achieve it. Some countries believe that it is first necessary to reduce the risks in banks before sharing them, but we are in favour of making progress on both risk reduction and risk-sharing in parallel.