The Fed's narrative about balance sheet normalization has consistently ratcheted expectations downward: starting with 'temporary, we'll get back to pre-crisis levels,' shifting to 'maybe not back to pre-crisis,' then to 'back to wherever it needs to be now,' and finally to keeping the balance sheet permanently enlarged.
factualpending
Speaker
Jack FarleyEvidence Quote
“Fed narrative keeps ratcheting: temporary → maybe not → wherever it needs to be → permanent”
Source
Debt Death Spirals, Fed's Losses, & Fiscal Theory Of Price Level | Peter Stella & Joseph Wang— Forward GuidanceCreated: 8/10/2026, 10:58:24 PM
My Notes
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