FED: Balance sheet expansion is only temporary

The FED is faced with the task of lowering inflation and maintaining financial stability at the same time.inflation: In order to lower inflation, the FED decided yesterday to raise key interest rates further. Financial stability: At the same time, the central bank's balance sheet is being expanded again. US Federal Reserve Chairman Jerome Powell emphasized at the press conference that the current expansion is a significant difference to the balance sheet expansion of the last 15 years. As the chart shows, it is currently all about short-term loans to banks to ensure liquidity.