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 Farley

Evidence 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 WangForward Guidance
Created: 8/10/2026, 10:58:24 PM

My Notes

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