10 Most FOMC participants think that this condition will be satisfied later this year if the economy continues broadly on its current path. 11  •  The balance sheet will be allowed to shrink passively as our holdings of Treasury and agency securities mature (or prepay) and roll off. 12  •  The process will be gradual and predictable.
As noted in the May minutes, although no decisions have been made, the Committee has discussed preannouncing a schedule of gradually increasing caps on the dollar value of securities that would be allowed to run off in a given month. •  The Committee will continue to use the federal funds rate as its principal tool for adjusting the stance of monetary policy.