Bill Miller on the Fed's ability to avoid hyperinflation

[The Fed has] already monetized a huge amount of this, they've provided an enormous amount of liquidity, there's a trillion dollars of excess reserves sitting on the Fed balance sheet. The issue is, how do you move away from that? I personally wouldn't go so far as Chairman Bernanke that he's a hundred percent certain that they can do it, but, you know, call it eighty-five to ninety percent, because the Fed's balance sheet will normalize on its own. If they don't do anything, all of those mortgage-backed securities will mature and they'll just drift away over the next 7-10 years.

~Bill Miller, chairman and CIO, Legg Mason Capital Management, CNBC's Squawk Box, April 6, 2011