MUFG's Rupkey Says Fed Could Run Unwind in Background

The video discusses the Federal Reserve's plan to start unwinding its balance sheet, a move seen as a technical operation rather than a policy shift. Despite concerns about inflation and the pace of rate hikes, the Fed aims to normalize the balance sheet without impacting the economy. The discussion also touches on the effects of quantitative easing (QE) and the role of liquidity in financial conditions.

In what way does the text suggest that the balance sheet normalization is perceived?

What does the text imply about the effectiveness of the current monetary policy?