: Fed’s Williams says could begin reducing balance sheet as soon as May meeting

The Federal Reserve may begin reducing its balance sheet as soon as its May 3-4 policy meeting to address the level of U.S. inflation that have become “particularly acute,” New York Fed chair John Williams said Saturday.

With Fed interest rate increases already underway, Williams, who also holds the title of vice chair of the board and is a permanent voter on the monetary policy committee, indicated that the central bank will now begin tightening financial conditions through a second channel by letting its nearly $9 trillion…