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Jay Powell’s Plan To Kill The “Fed Put” | Danielle DiMartino Booth

Forward Guidance

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The Fed's Balance Sheet Is Tough

The New York Fed came out with a report in April that suggested that by the end of 2025 that the balance sheet could be at $6 trillion. Maybe as mortgage prepayments start to come through in a falling interest rate environment, the Fed slows the rolling off of treasuries and increases the natural runoff of mortgage-backed securities. 63% of Americans who bought a home in 2022 and 2023 say they can't make their house payments.

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