. >> sam flemming. sam flemming, financial times. about the balance sheet that you are adopting today, you wanted to keep it until normalization was well underway. can you explain why you anticipate that to be appropriate? terms of it mean in what's appropriate? what is your idea around having larger balance sheets than historically the long-term? yellen: in the normalization principles that are in effect, the committee wantd that we eventually to operate with a much smaller balance sheet than we have at present. that we would reduce the size of essentiallysheet to whatever size we needed to manage monetary policy, in an effective and efficient way. since lot has changed pre-financial crisis in terms of the financial system. we are engaging in a project at this time to consider what our long run operating framework should look like. i can't tell you exactly what size of balance sheet we will determine is the best to operate in an efficient and effective manner. it might be somewhat larger than the very tiny quantity of .eserves that

. >> sam flemming drum the financial times. balanceask about the sheet policy you are adopting? you said you want to keep a large balance sheet until normalization is underway. can you explain why you anticipate that being appropriate, what does well under nate -- underweight mean in terms of normalization? and what do you mean that the fed sheet might need to have a larger balance sheet over term? ms. yellen: in our normalization principles which are in effect, we committee stated that eventually want to operate with a much smaller balance sheet that we have at present. we would reduce the size of the balance sheet to essentially whatever size we needed to in an monetary policy effective and efficient way. a lot has changed since pre-financial crisis in terms of the financial system, and we are studying, we are engaging in a project at this time to consider what our long run operating framework should look like, so i cannot tell you exactly what size of balance sheet we will determine is the best to operate effectivefficient and manner. tinyght be more than the quantity of rese

. >> sam flemming drum the financial times. balanceask about the sheet policy you are adopting? you said you want to keep a large balance sheet until normalization is underway. can you explain why you anticipate that being appropriate, what does well under nate -- underweight mean in terms of normalization? and what do you mean that the fed sheet might need to have a larger balance sheet over term? ms. yellen: in our normalization principles which are in effect, we committee stated that eventually want to operate with a much smaller balance sheet that we have at present. we would reduce the size of the balance sheet to essentially whatever size we needed to in an monetary policy effective and efficient way. a lot has changed since pre-financial crisis in terms of the financial system, and we are studying, we are engaging in a project at this time to consider what our long run operating framework should look like, so i cannot tell you exactly what size of balance sheet we will determine is the best to operate effectivefficient and manner. tinyght be more than the quantity of rese