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Article snippet: WASHINGTON — Janet L. Yellen, the Federal Reserve chairwoman, said on Friday night that the Fed is making “good progress” in reducing its vast portfolio of bond holdings, the most recent stage in the central bank’s gradual unwinding of its post-crisis economic stimulus program. Ms. Yellen said a safe retreat was a crucial step in establishing that similar measures could be used to respond to future economic downturns. “The bottom line is that we must recognize that our unconventional tools might have to be used again,” Ms. Yellen said in a speech to the National Economists Club. The Fed announced in September it would begin to reduce its $4 trillion portfolio of Treasuries and mortgage backed securities. It plans to shed $10 billion per month during the final quarter of 2017, then increase the pace by $10 billion every three months until it reaches a monthly rate of $50 billion. The Fed bought the bonds during and after the 2008 financial crisis as part of its broader campaign to revive economic growth by reducing borrowing costs for businesses and consumers. As it sheds the bonds, it expects interest rates to rebound gradually. The Fed is also considering when to raise its benchmark interest rate again. Investors expect a quarter-point increase at the Fed’s final meeting of the year in December. Ms. Yellen did not address those plans on Friday, but she has previously indicated she favors such an increase barring unexpected economic disruptions. President Trump s... Link to the full article to read more