Journal Article

The Mechanics of Fed Balance Sheet Normalization

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;

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Economic Synopses

Publication Date: 2023-08-23

Issue: 18

Pages: 3 pages