The Fed's balance sheet

Discussion in 'Economics' started by turkeyneck, Jan 11, 2010.

  1. WASHINGTON (MarketWatch) -- The Federal Reserve's bloated balance sheet could become a big liability in coming years if inflationary pressures explode, a top forecaster warns.

    "They've created a monster that they don't fully appreciate," said Ray Stone, chief economist at Stone & McCarthy Research and the winner of the December Forecaster of the Month award from MarketWatch. "They have a portfolio management problem."

    Stone, 59, was the most accurate forecaster among 44 economists on 10 key economic indicators released in December.