Shrinking Fed’s balance sheet a ‘solvable challenge’ – Miran
Central bank can shed $2 trillion off ledger without hitting scarce reserves threshold, governor says
The US Federal Reserve could reduce its balance sheet by up to $2 trillion without losing control of monetary policy, a member of its board of governors has said.
“My topline assessment is that shrinking the balance sheet is a solvable challenge,” Stephen Miran told the Economics Club of Miami in a speech on March 26. “Those who reject the idea out of hand simply lack imagination.”
Miran said the Fed could trim its balance sheet – which currently stands at around $6.6 trillion – by easing the
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