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The Mechanics of Fed Balance Sheet Normalization

Amalia Estenssoro and Kevin Kliesen

Economic Synopses, 2023, issue 18, 3 pages

Abstract: As the Fed continues to normalize its balance sheet, lessons from past tightening episodes and projections of possible futures may help achieve the optimal amount of reserves in the banking system and avoid undo financial stress.

Keywords: balance sheet normalization; Fed balance sheet; quantitative tightening; banking system reserves (search for similar items in EconPapers)
Date: 2023
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DOI: 10.20955/es.2023.18

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