Federal Reserve Advisor: Waller May Need Five Years to Reduce Fed's Balance Sheet

DeepFlowTech · 2026-03-26T02:03:25+00:00

Federal Reserve Chair nominee Kevin Warsh hopes to reduce the $6.6 trillion asset balance sheet, but reforms are needed, including changes to bank liquidity requirements and redesign of the payment system. These measures may take longer than Warsh's tenure to complete.

DeepFlowTech

2026-03-26 02:03:25

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Deep Tide TechFlow News, March 26 — According to Jin10 Data, Federal Reserve nominee Kevin Woor hopes to significantly reduce the Fed’s $6.6 trillion balance sheet. A top financial economist said it might take more than one term to accomplish this. Stanford Graduate School of Business professor and long-term Fed advisor Darrell Duffy pointed out in a new paper that if the Fed wants to reduce its influence on financial markets substantially without causing severe pressure, reforms are needed, including a complete overhaul of bank liquidity requirements and redesigning the payment system. Once Woor is confirmed by the U.S. Senate and receives support from colleagues, he can immediately implement some reforms. Duffy said other reforms could take up to five years, meaning this work could extend beyond Woor’s four-year chairmanship.

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