Fed Governor Advocates for Smaller Balance Sheet Amid Economic Crisis Measures

Federal Reserve Governor Stephen Miran emphasized the need for a reduced central bank balance sheet, while maintaining the option for large-scale asset purchases during economic downturns. Bloomberg posted on X, highlighting Miran's stance that a smaller balance sheet should not hinder the Federal Reserve's ability to respond effectively to financial crises. Miran's comments come amid ongoing discussions about the central bank's strategies for managing economic challenges and ensuring financial stability. His remarks underscore the balance between reducing the balance sheet and retaining flexibility in monetary policy tools to address potential economic disruptions.