Alan Blinder Says Fed Will Shrink Balance Sheet Quietly

The transcript discusses the current administration's lack of respect for traditional economics, the Fed's role in managing economic growth, and its strategy for shrinking the balance sheet. It highlights the importance of communication and transparency in the Fed's operations, contrasting past and present practices.

What is the administration's view on climate change according to the transcript?

• They support international climate agreements.

• They believe it is a hoax.

• They have no official stance.

• They consider it a serious issue.

What is the expected annual increase in the short rate by the Federal Reserve?

• 50 to 75 basis points

• 125 to 150 basis points

• 75 to 100 basis points

• 100 to 125 basis points

How does the Federal Reserve plan to manage its balance sheet?

• By expanding it significantly

• By shrinking it quietly

• By maintaining its current size

• By making sudden changes

How has the frequency of FOMC speeches changed from 1996 to 2017?

• It has decreased significantly.

• It has slightly decreased.

• It has remained the same.

• It has increased significantly.

What is the potential risk of the Federal Reserve's current communication strategy?

• Too much information crosscurrents

• Insufficient public engagement

• Increased market volatility

• Lack of transparency