Commitments to programs already unveiled could expand its balance sheet another “couple of billion”, Donald Kohn says. That won’t sooth Wall Street’s nerves much.
The Fed’s balance sheet currently stands just above $2 trln.
Bernanke is taking the stage to address the same subject.
Bernanke addresses the need to raise rates when that becomes necessary and that it is monitoring bank reserves to make sure that its policy does not clash with the private sector. I discuss that subject here.
