[toomuchtodo]

> They can sell off some of their balance sheet or raise interest rates to reduce the amount of money in the system.

The Fed was unable to unwind more than ~$650B out of $4T from their balance sheet in one of the longest expansion periods in US history. How will they do this? This is not a rhetorical question, I am genuinely curious in how people think this will be done if the Federal Reserve itself can't do it (either reducing the balance sheet or influencing the target rate above low single digits).

https://fred.stlouisfed.org/series/WALCL

[cm2187]

And if they can’t do it in good times. Like how much better than 2019 the economy needs to be to unwind more?

[OscarCunningham]

They couldn't do it without causing deflation which they didn't want. But if they were combatting hyperinflation then they would want to cause deflation, so it would be fine.