The Federal Reserve has to maintain stable growth while stifling harmful inflation. This is a balancing act because to stimulate growth you sometimes have to expand the monetary base which stokes the flames of inflation.
Here is an extremely important analysis by Econometrician James Hamilton. It analyzes the Fed's Balance Sheet and the options it has to "un-print money."
http://www.econbrowser.com/archives/2009/09/federal_reserve_2.html
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Sounds like Bernanke's job isn't getting much easier, just less hectic.
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