Will the Federal Reserve Enter the "Tapering Era"? $6.6 Trillion Balance Sheet to be Significantly Cut

On March 26, news emerged that Federal Reserve chairman nominee Kevin Warsh hopes to drastically reduce the Federal Reserve's balance sheet, which amounts to $6.6 trillion.

However, Stanford Business School professor and long-time Federal Reserve advisor Darrell Duffie pointed out that completing the tapering without triggering severe market shocks may require more than one term.

He believes that for the Federal Reserve to lessen its impact on financial markets, deeper reforms must be pushed forward, including:

Adjusting bank liquidity regulation rules

Restructuring the payment system framework

Some measures could be immediately advanced after Warsh takes office, but comprehensive reforms may take up to 5 years.

In simple terms: this is not an ordinary tapering; it could be a reconstruction at the financial system level. #特朗普希望尽快结束对伊朗战争 #美国加密法案再次遇阻 #美伊和谈陷僵局 #国际油价下跌 #特朗普缓和局势 $BTC $ETH $BNB