Federal Reserve officials do not know how much balance sheet reduction (quantitative tightening) corresponds to how much change in the federal funds rate, revealing a fundamental gap in their understanding of their own policy transmission mechanisms.
factualpending
Speaker
Chris WhelanEvidence Quote
“he doesn't know how much of a balance sheet reduction equals how much fed funds he has no idea”
Source
The Fed’s Ticking Time Bomb Is About To Explode | Joseph Wang & Chris Whalen— Forward GuidanceCreated: 8/11/2026, 1:23:06 AM
My Notes
Loading notes...