Warsh faces Senate hearing on Fed balance sheet reduction

Kevin Warsh is preparing for a confirmation hearing before the Senate Banking Committee in the United States, where his stance on the Federal Reserve's balance sheet is expected to be a primary focus. While Warsh has expressed a desire to significantly reduce the central bank's bond holdings, he has yet to provide a detailed roadmap for this reduction. In the interim, a framework is emerging among academics and central bank officials that suggests regulatory reform could be the key to a smaller financial footprint.