What Latest FOMC Minutes Suggest About Future of Policy

The transcript discusses the Federal Reserve's approach to managing its balance sheet and interest rates. It highlights the uncertainty around rate hikes, the progress on balance sheet reduction, and the strategy of using caps to manage holdings. The Fed aims for a regular and predictable system, with a focus on not shocking the markets. The discussion also covers market reactions to FOMC minutes and the potential use of the Fed funds rate to address inflation.

How do policymakers plan to implement caps or monthly limits?

What is the intended approach for the balance sheet reduction?