Following the global financial crisis in 2008, assets on the Federal Reserves balance sheet increased dramatically, from

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Following the global financial crisis in 2008, assets on the Federal Reserve’s balance sheet increased dramatically, from approximately \($800\) billion at the end of 2007 to over \($4\) trillion today. Many of the assets held are longer-term securities acquired through various loan programs instituted as a result of the crisis. In this situation, how could reverse repos (matched sale–purchase transactions) help the Fed reduce its assets held in an orderly fashion, while reducing potential inflationary problems in the future?

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