Apr 19, 2017 · "So balance-sheet expansions – and exits – are likely to become more standard monetary policy tools around the world." Still, Rosengren noted that the Federal Reserve should adopt balance sheet exit strategies "that reinforce the primacy of interest rate policy."
Jul 14, 2015 · The Fed balance sheet is the Federal Reserve's tally of its assets and liabilities, a set of figures the central bank issues every Thursday. The Fed's liabilities consist of U.S. dollars that are either circulating in the general economy or being held as the reserves that depository institutions — such as banks — are required to set aside to maintain solvency.
May 23, 2019 · The Federal Reserve Balance Sheet Strategy. The Federal Reserve will stop the unwinding at the end of September 2019. The Fed is now on schedule to unwind $35 billion per month in May through ...
The Federal Reserve System Open Market Account (SOMA) contains dollar-denominated assets acquired through open market operations. These securities serve several purposes. They are: collateral for U.S. currency in circulation and other liabilities on the Federal Reserve System’s balance sheet; Chairman Bernanke has indicated that any decision about expanding the balance sheet would depend on the FOMC’s assessment of the costs and benefits involved. Of course, that assessment is difficult to calibrate. Federal Reserve Bank of New York President William Dudley discussed many of the relevant issues in his speech last Friday. 7 However, the balance sheet’s normal size is not a fixed value, since some factors, such as Federal Reserve notes (U.S. dollar paper currency) and capital, tend to grow over time. See the Federal Reserve Bank of New York’s report and accompanying data file, “Projections for the SOMA Portfolio and Net Income (July 2017).”