Federal Reserve Governor Milan Says Balance Sheet Should Be Reduced Further

The official said the Federal Reserve should continue shrinking its asset holdings, signaling support for further balance sheet normalization.

Summary

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Terms & Concepts
  • Federal Reserve balance sheet: The total assets held by the U.S. central bank, including securities accumulated through monetary policy operations.
  • Balance sheet normalization: The process of reducing central bank asset holdings after periods of expansion to withdraw liquidity from the financial system.