The Balance Sheet Worry for Global Central Banks

The video discusses the balance sheets of major economies, focusing on the US Federal Reserve's balance sheet, which is around $4 trillion due to QE purchases. The Fed plans to reduce it by letting mortgage-backed securities mature. Concerns about the debt to GDP ratio in the US are highlighted, with calls for better financial accountability. Comparisons are made with the Bank of Japan and the ECB, noting that despite fears, QE has not led to significant inflation.

What is the expected impact of allowing mortgage-backed securities to mature on the Fed's balance sheet?

What were the initial fears regarding quantitative easing (QE) and inflation?