MALVERN, Pa. (Reuters) - The Federal Reserve can consider beginning to shrink its massive bond holdings once the overnight interbank lending rate hits 1 percent, Philadelphia Fed President Patrick Harker said on Thursday.
"When we are at or above 100 basis points - and we are moving toward that - I think it is time to start serious consideration of first stopping reinvestment and then over a period of time unwinding the balance sheet," Harker told reporters in Malvern, Pennsylvania, referring to the fed funds rate for interbank lending which the central bank tries to guide.
(Reporting by Jason Lange; Editing by Chizu Nomiyama)
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