Kevin Warsh Nomination Signals Focus on Trimming Federal Reserve Balance Sheet

Kevin Warsh has been tapped to lead the Federal Reserve and favors shrinking its balance sheet. Experts warn that market constraints will make this process slow.

Kevin Warsh kevin warshhas been tapped to become the next chair of the Federal Reserve in the US USUS. This appointment brings renewed attention to the central bank's multi-trillion-dollar balance sheet, as Warshhas publicly advocated for significantly shrinking these holdings. However, analysts and experts suggest that materially reducing these assets would be a difficult and likely slow process due to significant market and institutional constraints that affect the U.S. banking system and money markets.
FILE PHOTO: Kevin Warsh, a Fellow in Economics at the Hoover Institution and lecturer at the Stanford Graduate School of Business, speaks during the Sohn Investment Conference in New York City, U.S., May 8, 2017. REUTERS/Brendan Mcdermid/File Photo
FILE PHOTO: Kevin Warsh, a Fellow in Economics at the Hoover Institution and lecturer at the Stanford Graduate School of Business, speaks during the Sohn Investment Conference in New York City, U.S., May 8, 2017. REUTERS/Brendan Mcdermid/File Photo
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