My suggestion for macroprudential policy is that the international community should develop “best practices”. Whenever possible, central banks should be entrusted with their management, drawing a clear line with monetary policy actions, and they should assure that,  2  BIS central bankers’ speeches  at a minimum, macroprudential policies are transparent; targeted to a specific market failure or externality; and preferably be transitory.
The redemption or sale of securities would have the effect of reducing the size of the Federal Reserve’s balance sheet as well as further reducing the quantity of reserves in the banking system. Restoring the size and composition of the balance sheet to a more normal configuration is a longer-term objective of our policies.