Although the FOMC expects to begin normalizing its balance sheet relatively soon, several foreign central banks are continuing their purchases of longer-term assets in their own currencies.16 Because longer-term government securities in the major economies are close substitutes, the ongoing balance sheet programs of some foreign central banks will likely continue to hold down U.S. longer-term interest rates.
The proposals fall within the competence of the European Commission and the decision lies in the hands of the representatives of the governments of the Member States, namely the Council of the European Union. Our responsability is to remind all parties of the conditions which enable Economic and Monetary Union to function coherently.