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Minutes show active discussion of exit strategy, with "a range of views" but agreed this "did not mean that the move toward such normalization would necessarily begin soon." Some said need to be prepared to tighten later; a few wanted action later this yr;FOMC agreed no action in the end. Most preferred once asset sales are appropriate, "such sales should be put on a largely predetermined and preannounced path; however, many of those participants noted that the pace of sales could nonetheless be adjusted in response to material changes in the economic outlook. Several other participants preferred instead that the pace of sales be a key policy tool and be varied actively in response to changes in the outlook. A majority of participants preferred that sales of agency securities come after the first increase" in FF target. Many wanted to return SOMA to all Tsys "perhaps over 5 yrs." More gradual asset sales might allow an earlier FF rate hike. Most prefer returning to FF target, talked about a corridor target system of IOER low/DR top.
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