When I was asked to participate on this panel in the middle of last year, the prevailing metaphor regarding Federal Reserve balance sheet policy was "as boring as watching paint dry." Well, times have changed, and I commend the conference organizers for their foresight. Today I would like to discuss some of the recent decisions that the Federal Open Market Committee (FOMC) has made regarding the balance sheet and lay out a rough framework for some further issues that are on the horizon.1 In January, after much discussion, including in previous meetings, the FOMC announced its intent to continue operating in a ... (full story)