The Psychology of Fed Decisions

Lisa Finanza: Does the Fed know things that we don't know about what's happening in the banking system right now? John Sutter: I think they look at this and have an understanding that for some people out there, the more dovish they are, the more worried some other people might be. Lisa Finanza: Over time, if this liquidity provision persists with these new programs, then at some point they will probably have to address it. The balance sheet is actually now moving, and there are different forces on the balance sheet.