BONUS: George Selgin on the Fed Taper and Shrinking the Fed’s Balance Sheet
Macro Musings with David Beckworth
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Is the Supplemental Leverage Ratio Going to Be Tweaked?
I think we can shrink the balance sheet down rapidly and to a large degree. Maybe four trilling, like you said, a big number. And probably could see it go further ow whent i come back to that point about it might t be able to go below for trillion. Think there 're several reasons for that. But going forward, the daneripo facilitye should take some of that pressure off. Also, it looks like the supplemental leverage ratio as going to be tweak too. I don't think that tapering or even modest unwinds are a substitute for raising rates.
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