The Unseen Plumbing of Monetary Policy Economists and policymakers are parsing Kevin Warsh's calls for "regime change" at the Federal Reserve, but one crucial aspect remains shrouded in mystery: how he intends to reshape the Fed's balance sheet.
This $6. 8 trillion behemoth, built over 18 years of crisis fighting, underpins the entire financial edifice.
The debate surrounding the balance sheet's role in influencing financial conditions and supporting markets often reduces to its size: should it be smaller, or merely more judiciously used?