The Investment Implications of Shrinking the Fed’s Balance Sheet

About this episode

The episode discusses the implications of the Federal Reserve's balance sheet reduction and critiques its expanded role in economic issues.

In a speech last April, Fed Chair Nominee, Kevin Warsh, lamented the mission creep of the Federal Reserve as well as the Fed’s expanded balance sheet. Many academics agree with Warsh – the Fed has often tried to address problems that are not within its remit and with tools not suited to their purpose. Some of these endeavors have inflated the balance sheet which, rather like a Swiss army knife, is a tool used for many tasks, none of which it does particularly well.

People in this episode

Host: Dr. David Kelly

Topics covered

• Federal Reserve
• balance sheet
• investment implications
• economic policy
• financial tools

Keywords

• Federal Reserve
• balance sheet
• Kevin Warsh
• economic policy
• investment implications

Mentioned in this episode

Organizations: Federal Reserve

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