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.
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Provider: Federal Reserve Bank of Richmond
Part of Series: Richmond Fed Economic Brief
Publication Date: 2022-04