Fed's Balance Sheet Diet: How Much More Can It Shrink?
Key Points
- The Federal Reserve is focusing on reducing its oversized ba...
Ever wondered what keeps Federal Reserve officials up at night? Apparently, it's their oversized balance sheet that's harder to trim than your uncle's holiday belly bulge.
The Incredible Shrinking Fed Sheet
Cleveland Federal Reserve Bank President Beth Hammack has been eyeing those balance sheet numbers like a hawk watching its prey. As of late April 2025, she's convinced it's time to put the Fed's portfolio on an even stricter diet. The Fed's pandemic-era shopping spree ballooned its holdings from $4 trillion to a whopping $9 trillion - talk about stress buying!
From Super-Size to Dow...
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