Fed should let its balance sheet shrink over next couple of years - Waller - NewsBreak

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By Bryan in Business
Updated 2 years ago

(Reuters) - The U.S. Federal Reserve should let its $8 trillion balance sheet reduce over the next couple of years, Fed Governor Christopher Waller said on Thursday. "There is no reason to keep it that big really so why not let it just naturally run off as securities mature... let the balance sheet shrink back down to some other, smaller size and that way you have more space if you need to later to push it back up," Waller said at a virtual event hosted by the Official Monetary and Financial Institutions Forum.