As normalization moves into its later stages, my colleagues and I also believe that this is an important  -2moment to take stock of issues raised by the remarkable experiences of the past decade. We are therefore conducting a review of the Fed’s monetary policy strategy, tools, and communications practices. I will conclude with some thoughts on the review.
Balance Sheet Normalization Between December 2008 and October 2014, the Federal Reserve purchased $ trillion in longer-term Treasury and agency securities in order to support the economy both by easing dislocations in market functioning and by driving down longerterm interest rates. Consistent with the Committee’s long-stated intention, in October 2017 we started the process of balance sheet normalization.