James Bullard, Interview: St Louis Fed, as reported on the website, Bullard Speaks with Wharton about Inflation, Policy Rate, Fed Balance Sheet

“Asked how the Federal Open Market Committee should manage the Fed’s bond holdings, Bullard said he would prefer to see passive balance sheet runoff where the Fed doesn’t replace maturing securities initially, but also to have a plan B whereby the Fed could consider asset sales at some point if inflation doesn’t moderate and doesn’t begin to return to the Fed’s 2% target.”