Wind down Fed balance sheet; ban MBS/corporate/muni purchases; Treasuries-only QE
Mandate would have Congress limit balance-sheet purchases, wind assets toward pre-2008 levels, prohibit picking winners via MBS/corporate/muni debt, and preclude future MBS purchases while maturing/selling existing holdings.
Mandate
Mandate Ch. 24 (Federal Reserve) — Broad Recommendations: Federal Reserve balance sheet purchases should be limited by Congress and existing balance sheet wound down as quickly as prudent toward pre-2008 levels; limit future expansions to U.S. Treasuries; preclude future MBS purchases and wind down holdings by sale or runoff; eliminate interventions in corporate and municipal debt.
Undo plan
1) Normalize balance sheet with market-stability guardrails—avoid fire sales that spike mortgage rates abruptly.
2) Keep emergency Treasury-only operations distinct from credit allocation.
3) Require congressional authorization thresholds for non-Treasury assets.
4) Publish runoff schedules and housing-market impact analyses.
5) Verify: SOMA composition reports and mortgage-spread monitoring.