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Brookings paper offers broad plan to shrink Fed balance sheet – KnowGov

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Brookings paper offers broad plan to shrink Fed balance sheet

The Federal Reserve can substantially shrink its balance sheet if it overhauls its rate control toolkit to provide liquidity on demand, if those alterations are in made in conjunction with rule changes that allow banks to hold lower levels of cash on hand, says a new paper published by the Brookings Institution.

Sources (1)· Oct 21, 1:17 PM

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Reuters· Oct 21, 1:17 PMBrookings paper offers broad plan to shrink Fed balance sheet

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