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Press, Journal Article
HOW WE LEARNED TO STOP WORRYING AND LOVE THE FED’S BIG
BALANCE SHEET
The Fed’s balance sheet unwind is all the rage in the media and the markets. Policymakers
have committed to begin the process sometime later “this year.” We expect a gradual
unwind to begin by fall, but we aren’t worried. Dire economic and market consequences
from the Fed’s balance sheet will prove more imagined than real. And the big balance
sheet is here to stay along with a new role for the Fed in money markets.
SUMMER 2017
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