Concerns Over Expanding the Federal Reserve's Balance Sheet: Insights from Fed's Hammack

In recent communications, Federal Reserve official Jon Hammack expressed his apprehensions regarding the potential repercussions of an excessively large balance sheet. Hammack, a key figure within the Fed's financial ecosystem, articulated that scaling up the balance sheet beyond what is necessary could impose significant costs on the economy and financial markets. His remarks come amidst an ongoing discourse about how the central bank is managing its assets and liabilities in a post-pandemic environment.

Continue reading