Bowman: The Federal Reserve Should Maintain a Small Balance Sheet and Reform the Monetary Policy Framework
According to Golden Ten Data, Federal Reserve Governor Bowman stated that the Federal Reserve should seek to achieve the smallest possible balance sheet size and comprehensively reform its monetary policy implementation framework. She prefers to keep the balance sheet close to a scarce level, believing that returning to an active management mechanism would better reflect market pressures. Bowman supports the Federal Reserve holding only U.S. Treasuries and suggests considering the active sale of mortgage-backed securities (MBS).
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