Federal Reserve's Williams: Expects to soon initiate gradual asset purchases

According to Jin Shi reports, Federal Reserve's Williams stated that the Fed decided last week to stop reducing its bond holdings and may soon need to expand its balance sheet through asset purchases. He mentioned that the next step in the balance sheet strategy will be to assess when reserve levels will shift from the current "slightly above adequate" to "adequate." Williams expects that we will soon reach adequate reserve levels and warned that it is difficult to determine a specific timeline. Analysts expect that the Fed may begin to expand its asset size through asset purchases in the first quarter of next year.