Yellen Expects to Begin Winding Fed Down Balance Sheet

The video discusses the plan to normalize the balance sheet gradually and predictably, with a focus on economic expectations. It highlights the importance of monitoring inflation, noting that some inflationary weaknesses may be temporary but require careful observation. The transcript also connects inflation trends to future decisions on rate increases.

What is the purpose of normalizing the size of the balance sheet?

How does the speaker view the timing of the balance sheet normalization?

What factors are being considered regarding inflation?

What does the speaker believe about the current state of inflation?

What will be a factor in future decisions about rate increases?