Kaplan in comments in an essay
- US interest rate setting 'roughly appropriate'
- He hopes Fed balance sheet will expand only gradually once reserves meet ample levels of $1.5 trillion
- Expects pace of balance sheet expansion to moderate significantly over first half of 2020
- Supports review of treatment of Treasury bills in bank liquidity management
- He is open to other options for limiting growth of Fed balance sheet
- Sees slower US oil output and 10-15% drop in oil sector capex in 2020
I find it concerning that he is 'hoping' what the Fed balance sheet is. Who is in charge here?
