Andrew Levin on the Costs and Benefits of QE4 and the Future of the Fed’s Balance Sheet
Macro Musings with David Beckworth
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Should the Fed Be in the Business of Managing US Public Finance?
Andy Kuchins: I'm hopeful that Congress could adopt rules like what they did with Dodd-Frank the next time around when we get to QE5. The likelihood that there's trillions of dollars of transfer of mortgage back securities from the Federal Reserve to the Treasury or even that the Federal Reserve gives a lot of longer-term Treasury notes and bonds back to Treasury in exchange for short-term bills is very unlikely, he says. "I think it's much better to just strengthen the oversight of the Federal Reserve" Andy Kuchins' new paper Quantifying the Cost and Benefits of Quantitative Easing will be published soon by Hoover Institute.
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