The David Lin Report · Thursday, July 30, 2026
Milton Berg emphasizes that reducing the Federal Reserve's balance sheet is more critical than adjusting interest rates for combating inflation. He notes the balance sheet is "way, way too large" and that directly affecting money supply through balance sheet cuts has a greater impact on inflation than the "crude method" of rate hikes.
“Yeah, I think it's a little low. But I think the key is not the rate hikes. For Kevin Warsh and for myself, the key is really the balance sheet. The balance sheet is way, way too large.”
“Raising the rate is more of a crude method of getting inflation down. But cutting the balance sheet, which is actually directly affecting money supply, is far greater, has far greater, uh, effect on the inflation rate.”