Fed's George says US economy is on solid footing

• Uncertainty around shedding bonds could spark market volatility
• Shrinking balance sheet should be an autopilot process
• There will likely be a trade off between shrinking the portfolio and rate hikes
• Is worried about deliberately overshooting the inflation goal and overheating labour market
• Backs reducing bond portfolio this year

The Fed is on watch from any volatility from reducing their balance sheet but it really should be a smooth process.