Fed’s Kaplan Says Balance Sheet Unwind Should Be Gradual

The video discusses the Federal Reserve's plans regarding interest rates and balance sheet normalization. It covers the timing and strategy for tapering, emphasizing a gradual approach to avoid market disruption. The need for announcements ahead of changes is highlighted, along with considerations for the future size of the balance sheet and the role of excess reserves in financial management.

What is the Fed's current stance on raising interest rates?

When does the speaker believe the process of letting the balance sheet roll off could begin?

What does the speaker mean by 'tapering' in the context of the balance sheet?

How does the speaker view the size of the balance sheet compared to previous years?

What considerations does the speaker mention regarding excess reserves in the system?