United States Federal Reserve Chair Jerome Powell revealed on Thursday that the central bank's balance sheet should be "roughly" $2.5 trillion to $3 trillion lower compared to the current situation and down to a size where the Fed could conduct monetary policy.
He also predicted the Fed's asset portfolio will be reduced by up to $95 billion per month by September and that it is currently being scaled down by half of that number.
There is no clear connection between a concentrated economy and inflation, he told the US House of Representatives Financial Services Committee. The effects of increasing interest rates will be felt in financial conditions, economic demand, asset prices and the exchange rate, Powell explained.
