> Does the nominal amount of money on the Fed's balance sheet matter/should we strive to bring it to $0 This speech by Chairman Powell is information about the

> Does the nominal amount of money on the Fed's balance sheet matter/should we strive to bring it to $0 This speech by Chairman Powell is information about the Fed's current thinking on this question: https://www.federalreserve.gov/newsevents/speech/powell20190308a.htm https://www.federalreserve.gov/newsevents/speech/powell20190... In short, the Fed will not aim to return its balance sheet to the same size, relative to GDP, that it was before 2008. One reason is that the 2008 crisis revealed the importance of requiring major banks to keep reserve balances (and these reserve balances are liabilities on the Fed's balance sheet). There are also other technical reasons commented on in that speech.