(Reuters) – Mary Daly, President of San Francisco Federal Reserve Bank said Friday that she supported gradual rate increases this year. She also stated her support for shrinking the balance sheet quicker than it did the last time.

Daly stated that she would prefer for us to adjust the policy rate slowly and get into balance sheet reduction sooner than in the previous cycle. This was despite the fact that the meeting was held virtual due to the pandemic. Although she said that it was not her preference to shrink the balance sheet concurrently with the Fed’s first rate increase, she could see adjusting it after one or more rate increases.