Limit and wind down the Federal Reserve balance sheet
What the document says“Federal Reserve balance sheet purchases should be limited by Congress, and the Federal Reserve’s existing balance sheet should be wound down as quickly as is prudent”
The chapter asks that the balance sheet return to levels similar to those before the 2008 crisis, and that the central bank be barred from further purchases of mortgage-backed securities and wind down its holdings by selling them or letting them mature without replacement.
What the document actually says“Federal Reserve balance sheet purchases should be limited by Congress, and the Federal Reserve’s existing balance sheet should be wound down as quickly as is prudent”
Congress should cap what the Fed buys. What it already holds should be sold off.
The Fed bought huge amounts of bonds after 2008. It still holds them. The book says it should sell them off.
No action is recorded against this proposal. That is not evidence that none has been taken. See what the tracker does not yet cover.