The Federal Reserve Has an $8 Trillion Secret
SummaryThe balance sheet is one of the Fed’s most potent tools, but officials won’t say how they plan to use it.
Investors are hoping Christmas will come early next week when the Federal Open Market Committee releases its latest projections about monetary policy. It’s hard to imagine they’ll get their wish that Chairman Jerome Powell will hint at big interest-rate cuts to come in 2024. Meanwhile, the rest of us won’t get our wish to know what the Fed intends to do with one of its most powerful tools.