Focus on duration and not size of Fed ledger, ex-governor says
Discussion around balance sheet should go beyond shrinking nominal amount, argues Jeremy Stein
The discourse surrounding the US Federal Reserve’s balance sheet has centred too much on its nominal size and not enough on its maturity portfolio, a former member of the central bank’s board of governors has said.
In a panel during a conference hosted by the Federal Reserve Bank of Atlanta on May 18, Jeremy Stein argued that reducing the Fed’s footprint in financial markets was not about shrinking its ledger.
“I wouldn’t think of that footprint in terms of just dollar size,” said Stein, now a
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