Believe it or not, officials at the Federal Reserve are discussing how the Federal Reserve should operate its monetary policy in “normal” times.
As explained by Nick Timiraos in the New York Times, “Federal Reserve officials are zeroing in on a strategy to end the wind-down of their $4 trillion asset portfolio…” and are contemplating how monetary policy will be conducted once the efforts to reduce the size of the Fed’s securities portfolio has been achieved.
Here it is not altogether clear what policy tools will be used going forward.
One major focus of