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Normalizing Fed’s balance sheet to levels seen before the 2008 crisis is not feasible and the central bank’s balance sheet is likely to grow again, Federal Reserve Bank of Boston President Rosengren said earlier today while speaking in Hong Kong, according to Reuters.  

Key quotes

It may be important for the Fed to increase the share of treasury bills, lower duration of its balance sheet more quickly.

Fed will need to consider when to purchase securities to offset declining reserves as currency grows.

Central banks globally likely to reach rates’ lower limit quickly in a recession, making asset buying possible.

Important for the public to become more comfortable with the benefits of fed using its balance sheet.