Jun 14, 2022
2:51:26pm
Gente_Boa All-American
my problem with the Fed is they aren't shrinking their balance sheet fast enough
They only recently stopped expanding it and they still are not selling assets to shrink it. They are not replacing maturing assets but that is a very slow bleed. In my economics classes at BYU it was pretty widely believed that the Fed's open market transactions had a much larger effect on inflation than the federal funds rate. That is how they can quickly reduce the money supply. I believe they aren't pulling that lever because they are still trying to prop up those asset prices.
Gente_Boa
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Gente_Boa
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