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?

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

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

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

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

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