Such a plan would take place if the Fed continued to nudge up its benchmark short-term interest rate this year, according to the minutes. Forecasts call for an annual growth rate of about 3% in the second quarter. On Tuesday, Patrick Harker, the president of the Federal Reserve Bank of Philadelphia, said a rate hike at the Fed's June 13-14 meeting was "a distinct possibility." At the May meeting, Fed staffers briefed policymakers on a plan to reduce those holdings "in a gradual and predictable manner." Nearly all Fed policymakers "expressed a favorable view" of that approach, the minutes said.

Source: Los Angeles Times May 24, 2017 18:07 UTC