Source: Macroeconomic Policy Nexus
by David Beckworth
“Quantitative Easing (QE) is back in the news. So, too, is the large size of the Federal Reserve’s balance sheet. The public’s renewed interest in these topics has been sparked by President Trump’s nomination of Kevin Warsh to be the next Fed Chair. Warsh is a vocal critic of both QE and the Fed’s expansive balance sheet, and he has called for a ‘regime change’ at the Fed on these issues. I am broadly sympathetic to Warsh’s concerns about the size of the Fed’s balance sheet, and in previous newsletters I have outlined several steps to carefully reduce it. In this piece, however, I will focus on QE itself.” (02/06/26)
https://macroeconomicpolicynexus.substack.com/p/three-views-of-qe-irrelevance-insurance