Rep. Hill Questions Future of Fed's Balance Sheet

The transcript discusses typical remarks by Fed chairmen, focusing on Janet Yellen's approach to raising short-term interest rates and managing the balance sheet. It highlights the relationship between these actions and the Fed's strategy for normalizing the balance sheet as a percentage of GDP. The discussion also covers the timing and philosophy behind asset allocation, emphasizing a preference for the Fed to focus on Treasurys rather than other asset classes like mortgage-backed securities.

What is Janet Yellen's perspective on the relationship between raising short-term rates and shrinking the balance sheet?

What did Janet Yellen indicate about the timing of shrinking the balance sheet during her testimony?

How does Governor Powell's outline differ from Janet Yellen's approach regarding the balance sheet?

What concerns does the speaker express about the Fed's asset allocation beyond Treasuries?

What specific policies does the speaker hope to hear from Janet Yellen regarding the Fed's future operations?