Briefing

Projecting the Evolution of the Fed's Balance Sheet


Abstract: As the Fed embarks on balance sheet policy normalization, there is natural interest in understanding the projected evolution of the Fed's asset portfolio over the next three to four years. Several important assumptions are needed to be able to predict the path of the balance sheet. Based exclusively on public information, we use alternative sets of plausible assumptions to construct and analyze several different scenarios for the future of this critical policy-relevant lever.

Keywords: FOMC; System Open Market Account; monetary policy;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2022-04

Volume: 22

Issue: 15