The Fed should have a governance structure that puts pressure on it to shrink its balance sheet when it is not needed, similar to how the Treasury faces pressure through the debt ceiling; without such constraints, the Fed's independence allows it to expand indefinitely without political accountability.

normativepending

Speaker

Peter Stella

Evidence Quote

“Fed needs governance structure that puts pressure to shrink balance sheet”

Source

Debt Death Spirals, Fed's Losses, & Fiscal Theory Of Price Level | Peter Stella & Joseph Wang— Forward Guidance
Created: 8/10/2026, 10:58:24 PM

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