(As the Fed is once again planning to unwind its balance sheet, the size of which doubled as a result of its COVID-19-crisis Quantitative Easing, we think it worthwhile to draw your attention to a 2017 exchange, on the fiscal implications of such an unwind, between two…
I'm not the gambling sort. However, were I so I'd bet dollars to donuts that the Standing Repo Facility (henceforth "SRF") plan proposed by David Andolfatto and Jane Ihrig in a pair of St. Louis Fed articles (here and here) will be an important topic of discussion…
It is well known that the Federal Reserve System expanded its assets more than four-fold during and after the 2007-09 financial crisis by making massive purchases of mortgage-backed securities and Treasuries. The balance sheet has not returned to normal since. Total Fed assets stand today at $4.45…