FRBSF Economic Letter 2025-27 | November 17, 2025Central banks set policy to support the economy, provide liquidity, and promote financial stability. Modern central banking requires adaptation to current demands and a framework that fosters agility and readiness. Accordingly, central banks have used their balance sheets as policy tools over the past two decades. These tools demand clear communication to the public. The following is adapted from remarks presented by the president of the Federal Reserve Bank ...