Powell Says Fed Wants to Return Balance Sheet to Normal Level

The transcript discusses the Federal Reserve's approach to managing its balance sheet by letting securities roll off rather than selling them. It highlights the goal of returning the balance sheet to a more normal level, influenced by public demand for currency and reserves. The current balance sheet is under $4 trillion, significantly larger than pre-crisis levels due to increased currency demand. The discussion also reflects on the Fed's actions during the Great Recession, noting the success of quantitative easing and other government measures in preventing a global financial collapse.

How does the public's appetite for currency affect the Fed's balance sheet?

What is the current state of the Federal Reserve's balance sheet compared to before the crisis?

What lessons did the speaker learn from the Fed's actions during the Great Recession?

What was the impact of quantitative easing according to the speaker?

In what ways did the Fed's policies help prevent a collapse of the global financial system?