The Federal Reserve held interest rates steady last week. Inflation is still higher than the fed would like before making another rate cut.

Meanwhile, the central bank’s balance sheet reflects a quirk of its own structure: A balance sheet in the red.

Joe Santos, Ph.D., directs the Ness School of Management and Economics at SDSU. He leads the Dykhouse Program in Money, Banking, and Financial Regulation.

He talked with SDPB’s Lori Walsh.

You can find the Monday Macro blog on the Substack platform.