Fed, Fiscal Policy, and Unwinding the Balance Sheet

The transcript discusses the Federal Reserve's consensus on rate hikes and the shift in focus towards fiscal policy with the new administration. It highlights the uncertainty in forecasting due to unclear fiscal stimulus details and the market's reaction to potential fiscal impulses. The conversation also covers the Federal Reserve's balance sheet strategy, including the potential reduction of bond holdings and the challenges of managing long-term maturities. The discussion concludes with speculation on the future size and strategy of the Fed's balance sheet.

What is the significance of the upcoming March meeting for the Fed?

In what ways might the Fed's communication strategy change in the near future?