Task force should review QE tools and composition
The guest expressed hope that a Fed task force would review not just the balance sheet level, but its composition and the criteria for using tools like Quantitative Easing (QE).
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The guest argued that maintaining an 'ample reserves' regime with a large balance sheet creates political economy costs and invites other government entities to use the Fed's balance sheet for politicized purposes, threatening its independence.
The guest expressed hope that a Fed task force would review not just the balance sheet level, but its composition and the criteria for using tools like Quantitative Easing (QE).