The Fed is trying to have a Goldilocks moment. Reduce their balance sheet without crashing the market. I don't see how since the world's productive capacity has not kept up with their and every other central bank's balance sheet. If they do it slowly it will take them 20 years to get anywhere and that is hoping we don't have recessions within that time. They are trapped. Sure they can reduce a lot over a shorter time frame; say 5 years but then they will start affecting asset prices.

I never understood how the Fed thought they would get meaningful inflation. The US dollar is the reserve currency. We are mostly a consumer based society and we have a huge trade deficit. Therefore, any money printing would just drive up fixed asset prices here in the US and export the inflation we want to the world via our enormous trade deficit.