It’s become increasingly evident to people that we're on an unsustainable path.
The Fed continues to expand the scope of its operations. A new problem? Here's a new facility to deal with that. This makes the operations more and more complex, which makes the institution and the financial system more fragile.
The Fed's balance sheet is going to continue to get bigger and that will lead to more politicization. And the balance sheet is going to get riskier as these facilities simply transfer the risk from the financial system to the Fed.
rebeleconprof / Josh Hendrickson
npub18w…jr2wn
2023-03-18 16:56:20
Author Public Key
npub18wgtxzhx75qd2aq3gn35mcv5m8zx7z6xdsf6a95asltys70deekqqjr2wnPublished at
2023-03-18 16:56:20Event JSON
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"content": "It’s become increasingly evident to people that we're on an unsustainable path. \n\nThe Fed continues to expand the scope of its operations. A new problem? Here's a new facility to deal with that. This makes the operations more and more complex, which makes the institution and the financial system more fragile.\n\nThe Fed's balance sheet is going to continue to get bigger and that will lead to more politicization. And the balance sheet is going to get riskier as these facilities simply transfer the risk from the financial system to the Fed.",
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