In his keynote speech on "Bank Supervision and the Federal Reserve Balance Sheet," Federal Reserve Governor Milan stated that he strongly supports simplifying bank supervision and believes the Fed should consider exempting Treasury bonds and central bank reserves from the calculation of bank leverage ratios. Milan indicated his support for a natural balance sheet runoff, but hoped the Fed would immediately halt quantitative tightening (QT) at the October 28-29 FOMC meeting. Milan pointed out that a smaller Fed balance sheet would reduce interest payments to banks, and the size of the balance sheet should depend on a "gradual stripping" of regulatory requirements. (Jinshi)