Honey, I shrunk the balance sheet

Pankaj C. Kumar: With the size of the US Fed (pic) balance sheet at US$8.9 trillion (RM37.3 trillion) as at the end of January 2022, the Fed has an added responsibility to manage this gargantuan balance sheet.

THE year 2022 is surely turning out to be topsy turvy not only for markets but also for central bankers.

With inflation running wild everywhere, the path to normalisation is expected to accelerate as no central bank can afford to be wrong-footed when it comes to rate hikes.