Briefing
Projecting the Evolution of the Fed's Balance Sheet
Kirk, Kyler; Ennis, Huberto M. (2022-04)
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.
Richmond Fed Economic Brief , Volume 22 , Issue 15

Briefing
The Borrower of Last Resort: What Explains the Rise of ON RRP Facility Usage?
Kirk, Kyler; Wong, Russell (2021-12)
This article explains why the Fed has been borrowing more than $1.4 trillion from its borrower-of-last-resort facility: the Overnight Reverse Repo. We compare the roles of five channels potentially driving Fed borrowing (such as saving glut, quantitative easing, regulation, etc.) and find that one channel — the Treasury General Account drawdown — is associated with most of the current usage. We also find this channel's impact could be partially moderated if the Fed tapers quantitative easing accordingly.
Richmond Fed Economic Brief , Volume 21 , Issue 43