{http://www.bostonfed.org/news/speeches/rosengren/2014/060914/index.htm}
Boston Fed President Eric Rosengren full speech follow up (not a voting FOMC member, typically dovish)
Mr. Rosengren made the following comments:
"I personally do not expect that it will be appropriate to raise short-term rates until the U.S. economy is within one year of both achieving full employment and returning to within a narrow band around 2 percent inflation."
Rosengren offered a few potential exit-strategy options, including the possibility of a gradual and transparent reduction in the Fed's balance sheet, when that becomes appropriate. One possibility would be reinvesting "all but a percentage of securities on the balance sheet as they reach maturity," and gradually increasing that percentage.
Turning to raising rates, when appropriate, one tool would be raising the rate of interest that the Federal Reserve pays on excess reserves. Or, the Federal Reserve could engage in overnight reverse repurchase agreements