According to Jin10, Federal Reserve Governor Christopher Waller said the U.S. central bank could reduce its balance sheet by $300 billion to $500 billion.
Federal Reserve Governor Christopher Waller said the Federal Reserve could shrink its balance sheet by $300 billion to $500 billion, according to Jin10. In crypto markets, changes to the Federal Reserve balance sheet matter because balance sheet reduction, often called quantitative tightening (central bank asset runoff), can reduce financial system liquidity and influence risk assets such as Bitcoin and other digital tokens.