by Mike ‘Mish’ Shedlock
The Street
The Fed’s balance sheet is approaching $7 trillion dollars. This is what Bernanke meant by suspenders.
On February 27, 2013, Ben Bernanke spoke to US Congress about how the Fed would unwind its balance sheet.
Bernanke said, We Have “Belts, Suspenders” to Unwind Balance Sheet.
Bernanke’s vague answer to Sen. Richard Shelby, R-AL, when asked how the Fed will deleverage the balance sheet, was this: “In terms of exiting from our balance sheet… a couple of years ago we put out a plan; we have a set of tools. I think we have belts, suspenders – two pairs of suspenders. I think we have the technical means to unwind at the appropriate time; of course picking the exact moment to do, of course, is always difficult.”