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Fed's balance sheet size is far from hitting any constraints: Daly

Published 04/07/2021, 02:02 PM
Updated 04/07/2021, 02:05 PM
© Reuters. FILE PHOTO: San Francisco Federal Reserve Bank President Mary Daly poses in San Francisco

(Reuters) - The size of the U.S. central bank's balance sheet, now more than $7 trillion, is "far" from hitting any limits, San Francisco Federal Reserve Bank President Mary Daly said on Wednesday, noting that there are really only two constraints on its ultimate size.

"One is we can't be the only maker in the market, because then we start actually influencing things in a way we don't want to," Daly said at an event put on by the University of Nevada, Reno. "And the second is the optics of the balance sheet, as people like to call them, the tolerance for people thinking that we are not actually influencing the market pricing across the board because we are too large...but neither of those things right now is binding us."

Latest comments

Buy Gold if you can find any and wait. It will be the only game in town.
The balance sheet doubled in 18 months... why not double again? Good sense seems to be no constaint.
he size of the U.S. central bank's balance sheet, now more than $7 trillion, is "far" from hitting any limits, Unfortunately the statement is going to be proven true..the balance sheet will grow exponentially with MMT clearly embedded in the mind of Congress.
$1000 dollar bills coming to a bank near you......will buy 2 loaves of bread by 2030.
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