Newly confirmed Federal Reserve Chair Kevin Warsh aims to shrink the Federal Reserve’s balance sheet, which currently boasts assets near $6.7 trillion, in order to make markets safer and policy more credible; however, critics argue he should focus on improving the organisation's playbook rather than resizing it. As bank deposits and regulation continue to evolve post-Global Financial Crisis, the relevance and realistic expectations surrounding the size of the Fed's balance sheet has become a debated topic among financial leaders.
The Federal Reserve’s balance sheet has become Washington’s favorite oversized receipt. Everyone can see the number, everyone has an opinion, and almost nobody agrees on what the total actually proves. Kevin Warsh, the newly confirmed Fed chair, arrives w...
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