Milan: The Federal Reserve needs to shrink its balance sheet to free up room for market rescue, but the process is slow

ChainCatcher reports that Federal Reserve Board member Milan stated that the Federal Reserve’s balance sheet needs to be reduced, but this does not rule out the possibility of large-scale asset purchases during an economic crisis. He pointed out that shrinking the balance sheet will reduce the Fed’s influence in financial markets and provide more options for future crises. Milan emphasized that although he supports the reduction plan, the process cannot be completed immediately and many regulatory hurdles must be overcome.