The Fed wanted to further reduce longer-term interest rates, but it had already lowered its benchmark interest rate to near zero. The Fed does not plan to reduce its balance sheet to the precrisis level. If the Fed does so, the level of reserves will remain above its precrisis level, and that means the Fed’s balance sheet will be larger, too. Mr. Bernanke calculated that the Fed could need a balance sheet of roughly $4 trillion within 10 years. It might even see the need to once again expand its balance sheet.

Source: New York Times June 13, 2017 00:02 UTC