The Fed's Balance Sheet Is Significantly Larger Than It Was Before the 2008 Financial Crisis

The Fed quadrupled its balance sheet in the wake of the 2008 financial crisis. And then doubled it again during the pandemic. Do you see the Fed ever moving back to a scarce reserve framework like it had before the 2008 crisis? We think that the current system works well and provides a lot of liquidity to the system, which is kind of a net gain.