On the balance sheet side, Hu is arguably a strong "balance sheet reduction advocate." He sharply criticizes the Fed for holding a large amount of long-term U.S. Treasury bonds, believing that when the Fed's outstanding government debt exceeds that of many market participants, monetary policy has essentially become "fiscal policy in disguise." He further states outright that a massive balance sheet is of no help in achieving price stability and maximum employment, and instead results in extremely unfair wealth distribution effects.