PrintFed's Waller Advocates Balance Sheet Runoff
BY MT Newswires | ECONOMIC | 07/10/25 01:41 PM EDT01:41 PM EDT, 07/10/2025 (MT Newswires) -- Federal Reserve Governor Christopher Waller said Thursday in prepared remarks that the US central bank should continue shrinking the size of its balance sheet but not by as much as some economists have suggested.
Bank reserves are currently above an "ample" level that the Fed strives for and should ideally be about $2.7 trillion, Waller said in his speech at the Dallas Fed. That level of reserves, combined with its $2.3 trillion in currency holdings and $780 billion in US Treasury general account liabilities would put its balance sheet at $5.8 trillion, below the current level of $6.7 trillion, he said.
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