Fed's Warsh says markets to get advance notice on any balance sheet changes

Investing.com -- Federal Reserve Chair Kevin Warsh told lawmakers that any modifications to the central bank's balance sheet policies would be communicated well in advance to both Congress and financial markets.

Speaking at a U.S. House of Representatives Financial Services Committee hearing, Warsh said changes would be previewed, explained and debated before implementation.

The Fed chair noted his views on the central bank's large balance sheet are well known but said he did not want to prejudge decisions that a new Fed balance sheet task force will make.

Warsh emphasized that the Fed's balance sheet is part of monetary policy and said he wanted the central bank to steer clear of fiscal policy.

"I want to assure you that if there were a change in balance sheet policy, that we would preview it, explain it, debate it, and no changes in balance sheet policy would happen without good advance notice to the likes of this committee and broadly financial market," Warsh said.

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