Banner for 2022 Financial Markets Conference

3 p.m. Policy Session 4: Monetary Policy and Financial Stability Challenges During Balance Sheet Normalization
With the Fed's balance sheet now in excess of 30 percent of GDP, balance sheet policy and principles could have implications for both monetary policy and financial markets. Should the balance sheet be managed independently of the monetary policy rate? How might balance sheet normalization affect financial markets and the yield curve? Will the Fed's overnight reverse repo and standing repo facilities be the guardrails that ensure control of the policy rate and monetary stability? This session examines these and other timely issues around the Fed's balance sheet policy.
Moderator: Vincent Reinhart, chief economist and macro strategist, Dreyfus-Mellon [Presentation Adobe PDF file format]
Panelist: Seth Carpenter, managing director and chief global economist, Morgan Stanley
Panelist: Loretta Mester, president and chief executive officer, Federal Reserve Bank of Cleveland
Panelist: Brian Sack, managing director, D.E. Shaw and Co, LP
Panelist: Jeremy Stein, Moise Y. Safra professor of economics, Harvard University