As Fed Meeting Looms, Economists See Central Bank Balance Sheet in New Light

Historic Federal Reserve lending to banks in the wake of Silicon Valley Bank’s collapse punched a huge hole in its effort to shrink the size of its balance sheet, though economists don’t view that turnaround as a shift back toward a stimulative use of its asset stockpile. Instead, the rapid expansion of the Fed’s holdings of cash and bonds has emerged as a key tool to help contain…