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 StellaEvidence 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 GuidanceCreated: 8/10/2026, 10:58:24 PM
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