Secrets of the Federal Reserve’s Unconventional Monetary Policy | William English, former Director of Division of Monetary Affairs for the Fed Board of Governors, on Quantitative Easing (QE) and Forward Guidance

In this episode of Forward Guidance, Jack Farley interviews William English, a Professor of the Practice at the Yale School of Management and Senior Fellow at the Yale Program on Financial Stability, about monetary policy and the responses to post-pandemic inflation. They discuss the fiscal effects of monetary policy, the impact of interest rates on the fiscal situation, and the role of central banks in discussing fiscal policy. English shares insights on quantitative easing (QE), forward guidance, and the Federal Reserve's balance sheet, including the implementation and effectiveness of QE, the power of forward guidance, and the risks associated with quantitative tightening. The conversation also covers the Federal Reserve's monetary policy framework, the concept of "lowest comfortable level of reserves," and the impact of interest rate rises on the U.S. banking system.