(Reuters) – President Patrick Harker of Philadelphia Federal Reserve stated Wednesday that the U.S. Federal Reserve aims for a gradual tightening in monetary policy to maintain economic expansion.

Harker stated that both the Fed funds and balance sheets will be raised. This will slow down the economy but not so much that it risks putting the country in recession. He also reiterated comments he made last week regarding his economic outlook.

On Wednesday, more details will be revealed about Fed’s plans to reduce its balance sheet by several billion dollars. The Fed publishes the minutes from the last policy meeting.

Harker stated that he believes the Fed’s neutral rates, which are levels which neither constrict nor stimulate economic growth, to be around 2.5%.